Specifics of banking in Seychelles

The Seychelles, with its stable political and economic climate, is an attractive option for individuals and companies looking to open a bank account here. The country's banking sector is regulated according to international standards, ensuring the safety and security of your funds.

Banking System in Seychelles

Over the past four decades, the banking sector in Seychelles has changed beyond recognition. Banks have responded to the rapid development of the economy and supported the ambition to make Seychelles one of the leading players in the Indian Ocean. Today, the banking system is technologically advanced — all types of accounts are available including current, time deposits, demand deposits, savings schemes, credit accounts, and all major credit cards are represented.

Seychelles’ strict adherence to international banking standards and regulations ensures account holders that their money is safe and secure. Seychelles was one of the first countries in the region to adopt the Anti-Money Laundering Act in 1996, underlining its commitment to combating financial crime. The country also adheres to the Basel II and III Accords, which further enhance the stability and security of the banking sector. Moreover, banks offer numerous security features such as encrypted online banking services, fraud monitoring, and secure ATM networks.

One of the unique features of the Seychelles banking environment is the single licensing regime, allowing banks to conduct both domestic and international (offshore) banking activities without the need for separate licenses. This flexibility makes Seychelles an attractive location for international business.

Opening a bank account in Seychelles has the following benefits:

• Political Stability. As a democratic country that has long been governed in peace, Seychelles offers political stability, which is important for long-term financial planning. There is little chance of regressive political reform.
• Standardization. The banking industry is strictly regulated in accordance with international norms.
• Banking Services. Seychelles has a very good online banking system, with many local and foreign banks offering a variety of services via the Internet and opening accounts anywhere in the world.
• Taxation Benefits. Income from investments abroad and income earned outside the country is not subject to taxation in Seychelles. This makes them a popular place to set up tax plans for foreign income.
• Confidentiality Rules. Strict banking secrecy and confidentiality rules protect clients’ money and financial transactions through their bank accounts in Seychelles.
• Multi-currency accounts. Almost all banks offer multi-currency accounts, which make it easy to control multiple currencies from a single offshore account.
• Capital Growth. Seychelles’ high investment potential and access to East Africa, Asia and other countries make it an attractive financial center.

Major Banks in Seychelles

There are currently seven banks operating in Seychelles, including five foreign banks. Two of them, Seychelles Commercial Bank and Nouvobanq, are wholly or mainly owned by the government, while the others are subsidiaries of foreign banks. The Central Bank of Seychelles regulates each bank.

• Absa Bank (Seychelles) Ltd is a member of the Asba Group, formerly known as Barclays Africa Group Ltd. The Absa Bank Group is headquartered in Johannesburg, South Africa, and the UK-based Barclays Group remains the majority shareholder. The bank offers personal, commercial and business banking services.
• Al Salam Bank Seychelles Ltd is an Islamic bank headquartered in the Kingdom of Bahrain. It offers online banking, retail banking and commercial banking services.
• Bank of Baroda is an Indian bank. Its operations in Seychelles offer both personal and corporate banking services, as well as other ancillary services.
• Bank of Ceylon is is a Sri Lankan bank that opened its branch in Seychelles in 2014, offering services to domestic and offshore banking customers. It provides both personal and corporate banking services.
• MCB Seychelles is a subsidiary of Mauritius Commercial Bank, a commercial bank operated by the State Bank of Mauritius. It offers a range of retail banking and other related services.
• Nouvobanq (also known as Seychelles International Mercantile Banking Corporation (SIMBC) was established in 1991 and provides both personal and corporate accounts.
• Seychelles Commercial Bank (formerly known as Seychelles Savings Bank) was founded in 1981 and privatized in 1992. It offers both personal and commercial accounts.

Types of Bank Accounts in Seychelles

Personal Bank Account

In Seychelles, personal bank accounts are designed to meet the everyday banking needs of individuals. These accounts offer a variety of services such as fund transfers, ATM access, online banking and more.

Business Bank Account

Business accounts in Seychelles are designed for both small and large businesses. They provide a range of services including transaction processing, payroll management, online banking services and multi-currency options.

How to Open a Bank Account in Seychelles

To open a bank account in Seychelles, you must meet the criteria set by the bank. These criteria may vary, but generally include:

• Be at least 18 years old
• Have a valid ID
• Have proof of address
• Required documents

Required documents to open a bank account in Seychelles may include:

• A valid passport
• Proof of address (utility bill or bank statement)
• Proof of income or source of funds

Here are the steps to open a bank account in Seychelles:

1. Choose a bank in Seychelles. The type of business you do will often determine the type of account you open.
2. Check eligibility requirements and prepare the necessary documents.
3. Apply online or visit the bank in person.
4. Submit documents and wait for approval.
5. Once approved, deposit the minimum required amount.

Seychelles allows non-residents to open bank accounts, although it is important to note that this may entail more stringent documentation and due diligence requirements than the process for residents. In addition, the intended purpose of the account must be demonstrated to the bank to their satisfaction. Depending on the bank, the process can be completed remotely, which is an advantage for non-residents.

Offshore Banking

Seychelles is one of the world’s leading offshore banking centers, offering tax-free and low-tax structures, as well as its global trading zone for easy cross-border transactions. Offshore bank accounts in Seychelles provide countless benefits, including tax breaks and asset protection. Additionally, these accounts are known for offering a high level of financial privacy, protecting both the identity and information of account holders. Offshore banks follow the same oversight, licensing, standards, and regulations as local banks. Non-residents can open an offshore account, allowing them to benefit from tax efficiency and asset protection.

How to open an offshore bank account

To officially open an offshore bank account for your company or yourself in the Republic of Seychelles, you must follow the standard procedures that most banks will require:

• Complete the account opening form: this involves providing details of the account holder, the nature of the business, the expected transaction volumes and the source of wealth.
• Provide identification documents: you will need copies of the passports of all directors/shareholders and proof of address, such as a utility bill not older than 6 months.
• Provide company documents: this includes the certificate of incorporation, memorandum and articles of association, and details of the registered office in the Seychelles islands.
• Make a minimum deposit: Most banks require a minimum deposit of US$5,000 when opening a business account in Seychelles. The funds must be deposited within 30 days.
• Appoint authorized signatories: Identify who will sign cheques and approve transactions on the account. Their ID and proof of address are also required.
• Participate in an interview (if required): Some banks may conduct a short video call to verify the information provided in the application before opening the account.

Once verified, the bank will send you the account details, sort code, and debit cards if you are applying for them. And from that moment on, your offshore bank account in Seychelles is officially open for business.

Opening an Offshore Bank Account in Seychelles Online

With the advancement of digital banking platforms, it is now possible to open some types of offshore bank accounts in Seychelles entirely online, without the need for wet signatures or face-to-face meetings. This provides added convenience for foreign clients residing overseas.

The process of opening a digital account involves uploading identification documents, providing source of wealth information, and undergoing an online interview via video chat. Applicants will receive a notification of approval within 24-72 hours of submitting their application.

Approved customers will then be able to start using online banking services such as multi-currency accounts, bank transfers, card-free cash withdrawals, bill payments and more, directly from their computer or mobile device without having to visit Seychelles.

Online offshore banking offers the same financial privacy and flexibility as traditional bank accounts. However, it is important to ensure that the bank is properly licensed by Seychelles regulators before sharing sensitive personal and financial information online.