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2013-03-01

Financial Institutions (Compounding of Offences) Regulations 2013

The Central Bank of Seychelles issued these regulations to authorize the compounding of offences under the Financial Institutions Act, 2004, in consultation with the Attorney-General. The framework mandates written notification of the offence and proposed penalty, requiring a 14-day response for acceptance or refusal followed by a five-day payment window. Minimum compounded penalties are set at SCR 1,000 for bureaux de change and persons, and SCR 5,000 for banks, with final acceptance barring further legal action unless the agreement is breached.

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[18th February 2013] Supplement to Official Gazette S.I. 12 of 2013 FINANCIAL INSTITUTIONS ACT, 2004 (Act 14 of 2004) Financial Institutions (Compounding of Offences) Regulations, 2013 In exercise of the powers conferred by sections 69( a) read with 72 of the Financial Institutions Act, 2004; the Central Bank hereby makes the following Regulations -

  1. These Regulations may be cited as the Financial Institutions (Compounding of Offences) Regulations, 2013.
  2. The Central Bank may compound an offence in consultation with the Attorney-General in lieu of instituting legal proceedings under the Act.
  3. The Central Bank, after identifying the offence shall notify the financial institution or such person in writing of - (a) the offence; (b) the amount of compounded monetary penalty that may be agreed to; (c) the requirement for the financial institution or the person to notify the Central Bank in writing, no later than 14 days after receipt of the Central Bank's written notification informing of their refusal or acceptance to compound the offence; (d) the requirement for the financial institution or the person who agrees for the offence to be compounded to make payment of the compounded monetary penalty to the Central Bank no later than 5 days after the acceptance of the written notification under subparagraph (c); 989 Citation Compounding of offences Procedure for compounding of offence

990 Compounded monetary penalty Compounding of offences to be final Breach of agreement Supplement to Official Gazette [18th February 2013] (e) the manner in which payment under subparagraph (d) shall be paid to the Central Bank; (t) any other information deemed relevant by the Central Bank. 4.( 1) The compounded monetary penalty shall not be less than SCRl ,000 for a bureau de change or a person. (2) The compounded monetary penalty shall not be less than SCR5,000 for a bank or a person. (3) The compounded monetary penalty shall not exceed the maximum fine prescribed under the Act. 5. An acceptance to compound an offence shall be final and conclusive. 6. Where the terms of the agreement to compound the offence has been breached, the Central Bank may institute legal proceedings. MADE this 8th day of February, 2013. CAROLINE ABEL GOVERNOR CENTRAL BANK OF SEYCHELLES

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