Analysis of the Financial Services Authority’s 2024 Annual Report: Key Regulatory Developments and Sector Insights in Seychelles
1. Introduction
The Financial Services Authority (“FSA”) in Seychelles has published its 2024 Annual Report, outlining a year marked by regulatory consolidation, strengthened supervisory frameworks and closer alignment with international standards. As Seychelles continued refining its financial services landscape, the 2024 report provides clarity on the jurisdiction’s direction, priorities and progress across several core areas.
The article highlights and analyses the most significant developments of the past year, based on information published in the Report.
2. Implementation of the VASP Framework
The Virtual Asset Service Providers Act, 2024 (“VASP Act, 2024”) together with its suite of supporting regulations, became fully operational during the year. These instruments establish requirements for licensing, cybersecurity controls, client asset protection, advertising standards and the registration of ICOs and NFTs.
This framework brings Seychelles into alignment with FATF Recommendation 15 and positions the jurisdiction among the few in the region with a complete and modern regulatory regime for virtual asset activities. According to the Report, this is intended to safeguard market integrity while enabling innovation in areas such as digital assets and fintech.
3. Strengthened AML/CFT Oversight and Alignment with FATF
The Report outlines continued reforms to the national AML/CFT framework, driven by the FSA, the Central Bank of Seychelles and the FIU. Notable outcomes include the upgrade of FATF Recommendation 4, which concerns the ability of a jurisdiction to freeze, seize and confiscate of crime through effective legal and operational measures, to Compliant. The ongoing implementation of the AML/CFT Act, 2020 and related Beneficial Ownership reforms and coordinated supervision across sectors further strengthened the jurisdiction’s ability to detect, prevent and respond to financial crime risks.
4. Removal from the EU Blacklist and Progress on Tax Transparency
The Report confirms that Seychelles was removed from the EU’s Annex I (i.e. commonly referred to as “Blacklist”) and placed on the grey list in February 2024, awaiting the results of the supplementary review in 2025. The shift followed substantive legislative updates on ownership information and the submission of a request for an OECD Global Forum supplementary review, which was scheduled for 2025.
The move to the grey list reduced reputational and operational risks for the jurisdiction, while the upcoming supplementary review underscores the need for continued improvement in information availability and exchange-of-information practices.
5. Advancement of International Organisation of Securities Commissions (IOSCO) Technical Assistance
During the year, the FSA finalised the ‘Terms of Reference for a Technical Assistance’ programme with IOSCO. This programme will review the legal and supervisory framework governing securities, identify deficiencies and recommend the reforms necessary for Seychelles to meet the IOSCO Multilateral Memorandum of Understanding standards.
The Report notes that this work forms the basis for Seychelles’ planned reapplication for Ordinary Membership and MMoU signatory status. Achieving these milestones would significantly strengthen cross-border regulatory cooperation and enhance the jurisdiction’s standing in global capital markets.
6. Continued Economic Growth Driven by Tourism and ICT
The economic section of the Report demonstrates that Seychelles recorded real GDP growth of 3 percent in 2024. Growth was supported primarily by tourism, with 352,762 visitors arriving during the year, and by the ICT sector, which expanded by 10 percent as digitalisation efforts intensified.
Although external pressures such as higher freight costs and a weaker rupee affected inflation and operating conditions, the Report highlights a stable overall economic environment, which supports the ongoing development of the non-bank financial services sector.
7. Strengthening Institutional Capacity and Risk Management
The Report highlights internal advancements within the FSA, particularly in governance, staff development and risk management. Key initiatives included the development of strategic risk management documents, enhancements to internal audit processes and the introduction of Strategic Planning Champions to support implementation of the 2021-2025 Strategic Plan.
8. Conclusion
The 2024 Annual Report demonstrates continued progress in strengthening Seychelles’ regulatory frameworks and institutional capacity. The developments in digital asset regulation, AML/CFT alignment, tax transparency, international cooperation and internal governance reflect a jurisdiction prioritising stability, transparency and long-term credibility.
Looking ahead, Seychelles is positioned for a pivotal year as it moves toward further FATF re-ratings, the Global Forum supplementary review and renewed engagement with IOSCO. The direction set in the 2024 Annual Report suggests continued regulatory strengthening, greater international alignment and a more structured supervisory environment for firms operating in the jurisdiction.
For business entering or operating in Seychelles, FiveComply provides streamlined licensing and compliance solutions aligned with the latest regulatory developments, from digital asset regulation to strengthened AML/CFT and transparency standards.
Disclaimer: This article is provided for general informational purposes only and does not constitute legal, regulatory or professional advice. Readers should seek independent advice before taking any action based on the information contained herein.