The Eastern and Southern Africa Anti-Money Laundering Group has published Seychelles’ 13th enhanced follow-up report and sixth technical compliance re-rating, assessing progress against technical compliance deficiencies identified in the country’s 2018 mutual evaluation. The main change in this cycle is an upgrade of FATF Recommendation 15 on new technologies from partially compliant to largely compliant, reflecting additional AML/CFT measures, particularly for virtual asset service providers. The report does not assess effectiveness and Seychelles remains in the enhanced follow-up process. The re-rating was driven by evidence that financial institutions are required to assess money laundering and terrorist financing risks before launching new products, practices or technologies, and by new supervisory arrangements for virtual asset service providers. ESAAMLG highlighted the Financial Services Authority’s AML/CFT risk-based supervision manual, which covers seven sectors including virtual asset service providers, and section 58(2) of the AML/CFT Act 2025, which requires supervisory authorities to develop and implement risk-based supervision. The report also notes enforcement action against unlicensed virtual asset service providers, including referrals for criminal investigation and cease-and-desist measures. A residual shortcoming remains under criterion 15.1 because Seychelles’ assessment of risks from new products and technologies was limited to the banking and insurance sectors, leaving other sectors such as capital markets and microfinance unassessed. Seychelles will remain in enhanced follow-up and continue to report to ESAAMLG on progress in improving and implementing its AML/CFT measures. Progress on effectiveness will be considered in a later follow-up assessment.

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