CENTRAL BANK OF SEYCHELLES  & SEYCHELLES BANKERS ASSOCIATION

NOTICE TO THE GENERAL PUBLIC

The Central Bank of Seychelles (CBS) and the Seychelles Bankers Association (SBA) would
like to inform the general public that Seychelles will join the global financial community in
adopting a new international standard for exchanging electronic payment information between
financial institutions.
Starting November 22, 2025, the current SWIFT Message Type (MT) format will be replaced
by the ISO 20022 standard for all domestic and cross-border electronic payments and financial
transactions processed through the SWIFT network, including within the local banking
industry.
ISO 20022 enables the exchange of more structured and detailed data. Compliance with this
common standard will ensure more seamless connections between payment systems globally
and contribute to more efficient, secure and transparent financial transactions. For financial
institutions specifically, this change will improve automation, streamline payment processing,
enhance data accuracy and transparency as well as strengthen compliance and risk
management.
Locally, customers are not expected to experience any changes or disruptions to how they
conduct payment transactions, as the transition will primarily affect the backend processing of
financial and payment data by CBS and the commercial banks.
The CBS and commercial banks have been preparing for this transition to ensure seamless
implementation. The public is encouraged to contact their respective institutions for more
detailed information.
The adoption of ISO 20022 reflects the CBS and SBA’s commitment to the ongoing
modernisation of Seychelles’ financial system and alignment with global payment standards.

Following the rise in fraud cases recorded last year, the Seychelles Bankers Association is seeing an increase in reported cases currently in the market related to social media adverts or calls being made via Whatsapp.

The public is being advised that NO bank makes offers for loans through social media and they follow risk-based practices for granting of loans. Additionally, your bank will never request for your banking details over the phone. Members of the public are informed NOT to reveal their personal banking information including debit/credit (ATM) card details, CVV, PIN, OTP received, etc… to unknown persons requesting for such, especially if they are being contacted on behalf of a bank. If in doubt, please contact your bank to clarify.

The Seychelles Bankers Association once more reminds all bank clients to continue to exercise caution when making use of social media platforms and receiving calls claiming to be on behalf of banks. Do not fall victim to scams.  

Understanding where money or assets originate from, known as “source of funds,” is crucial in banking. This is why it matters:

Regulatory Compliance: Banks must adhere to strict regulations to prevent illegal activities like money laundering. Knowing the source of funds helps banks comply with these rules and maintain integrity.

Risk Assessment: Assessing the source of funds allows banks to evaluate associated risks. Legitimate sources pose lower risks compared to suspicious or unidentified ones.

Fraud Prevention: Identifying the source of funds helps banks detect and prevent fraudulent activities, ensuring the security of transactions.

Transparency: Banks may request documentation to verify the source of funds, promoting transparency and trust among customers and stakeholders.

In essence, understanding “source of funds” ensures compliance, reduces risks, prevents fraud, and fosters transparency in the banking sector.

Remediation involves the process of cleaning up and updating the details of the customer in their database, to ensure compliance with the latest regulations. This includes:

1. Identifying incomplete or outdated information: Reviewing customer profiles to find missing, outdated, or inaccurate data.
2. Contacting customers: Reaching out to customers to obtain updated information, such as proof of identity, address, occupation, and source of funds.
3. Verification: Customer identity remediation is the process of updating and verifying a customer’s identity information to ensure accuracy and compliance with regulatory standards. This step verifies the authenticity of the information provided by the customer against reliable, independent sources.
4. Risk assessment: Reassessing the customer’s risk profile based on the updated information could involve adjusting their risk level and monitoring the intensity of their activities. This process may also include , especially for customers classified as higher risk, to ensure a more thorough understanding of their financial activities and background.
5. Documentation and reporting: Updating internal records with the new information and, if necessary, reporting to regulatory authorities.
6. Continuous monitoring: Implementing ongoing transaction monitoring processes to ensure continuous compliance. All accounts should be updated on the system once new information is received.

Understanding KYC is essential in banking, involving necessary steps to confirm and verify customer identities during account setup. These steps, required by law, help banks reduce risks and maintain trustworthy business relationships.

KYC’s main goal is to make sure that customers are who they say they are. This process is vital for stopping money laundering, terrorism financing, and other illegal activities. Not following KYC rules can lead banks to refuse to open accounts or end existing relationships.

Key Steps in a Typical KYC Process:

High-risk customers are individuals or companies that could possibly pose a threat to a financial institution and its operations. In the digital realm, these entities may trigger compliance issues, perpetrate fraud, or attempt to breach cybersecurity protocols.

Risk appears in various forms across different industries. For instance, a high-risk customer might: