Foreign Exchange Act, 2009

[20th July 2009] Supplemenlto Official Gazette FOREIGN EXCHANGE ACT, 2009 (Act No. 10 of 2009) I assent J. A. Michel President 9th July, 2009 AN ACT to repeal and replace the Exchange Control Act, 1954 (Cap 76). ENACTED by the President and the National Assembly.

1. This Act may be cited as the Foreign Exchange Act, Short title

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98 Interpretation Act 14 of 2004 Act 14 of 2004 Act 12 of 2004 Supplement to Official Gazette [20th July 2009] 2. InthisAct- "authorised dealer" means- (a) a bank; or (b) a Bureau de Change; "bank" means a person licensed under the Financial Institutions Act to conduct banking business; "Bureau de Change" means a person licensed under the Financial Institutions Act to carry on foreign exchange business; "Central Bank" means the Central Bank of Seychelles established by section 3 of the Central Bank of Seychelles Act; "'convertible for gn ~urre cy" means a foreign currency that is widely traded in international foreign exchange markets; "current international transaction" means an international transaction for which payments are not for the purpose of transferring capital, and includes- (a) payments due in connection with fore ign trade, other current business, including services and normal short-term banking and credit facilities; (b) payments due as interest on loans and as net income from other investments; (c) payments of moderate amounts for amorti￾sation of loans or for depreciation of direct investments; and (d) moderate remittances for family living expenses;

[20th July 2009] Supplemenl 10 Official Gazelle "domestic currency" means currency notes and coins issued by the Central Bank; "foreign currency" means currency notes and coins not issued by the Central Bank; "foreign exchange" means- (a) foreign currency; and (b) monetary claims including - (i) deposits, credits and balances; and (ii) drafts, travellers cheques, letters of credit and bills of exchange, payable in a foreign currency; " international capital transaction" means an international transaction for the purpose of transferring capital between a resident and a non￾resident and includes - (a) direct investment; (b) portfolio investment; (c) borrowing and lending; (d) capital transfers; and (e) such other transactions as may be prescribed by regulations under this Act; "international transaction" means a transaction between a resident and a non-resident whether it takes place in Seychelles or outside Seychelles; "Minister" means the Minister responsible for Finance; 99

lOO Cap 93 Pennitted activities of authorised dealers Supplement to Official Gazette [20th July 2009] "non-resident" means a person who is not a resident; "person" means any natural or legal person and includes a body of persons, whether it has legal personality or not; "resident" means- (a) a natural person who resides permanently in Seychelles or holds a valid residence permit issued under the Immigration Decree or has been physically present in Seychelles for a period of at least one year; (b) an office, branch or agency of a legal person that is registered or incorporated in Seychelles or that has its centre of economic interest in Seychelles; (c) (i) a member of a diplomatic or consular mission of Seychelles located outside Seychelles; and (ii) the staff of such diplomatic or consular mission and members of their family who are citizens of Seychelles; or (d) the surviving heir of a person referred to in paragraph (a) or (c) where that heir resides permanently in Seychelles or holds a valid residence permit issued under the Immigration Decree or has been physically present in Seychelles for a period of at least one year; "transfer" means a unilateral or unrequited transfer, whether current or capital in nature, and includes a remittance by a non-resident of the proceeds of a payment received in Seychelles. 3.(1) A person otherthan an authorised dealer sh'lll not, as abusiness- (a) buy foreign currency from or sell foreign currency to any person other than an authorised dealer;

[20th July 2009] Supplement to Official Gazelle (b) set an exchange rate for the buying or selling of foreign currency; or (c) act as a facilitator for payments, receipts or transfers in respect of international trans￾actions in accordance with section 5. (2) For the purposes of this section, a person carries on any of the activities specified in subsection (I )(a), (b) or ( c) as a business, if that person carries on any of those activities on a sustained basis and for a profit. 4. An authorised dealer shall conspicuously display at its exchange counter- (a) its exchange rates for the buying and selling of foreign currency; and (b) any commission, fee or other item that affects the net proceeds of a sale or purchase of foreign currency. 5. Payments to and receipts from, and transfers to and from any person outside Seychelles with respect to an international transaction shall be made through an authorised dealer. 6. Payments for the export of goods and services from Seychelles shall be received by the exporter in a convertible foreign currency. 7. (1) Goods sold and services provided in Seychelles which are advertised for in Seychelles shall be advertised for in the domestic currency. . (2) Goods sold and services provided in Seychelles may be advertised for outside Seychelles in a foreign currency. (3) Goods sold and services provided in Seychelles which are advertised for in a media which makes the advertisement accessible both in and outside Seychelles￾101 Authorised dealers to display exchange rates and other information Payments, receipts and transfers for international transactions to be made through authorised dealers Payments for eXJXlrt of goods and services to be received in convertible foreign currenoy Advertisement ofg~and servIces

102 Payments for goods and services provided in Seychelles to be in domestic =cy Duty to keep records Supplement to Official Gazelle / [20th July 2009] (a) shall, where the goods and services are intended for persons in Seychelles, be advertised in the domestic currency; (b) may, where the goods and services are intended for persons outside Seychelles, be advertised in a foreign currency; and (c) shall, where the goods and services are intended for persons both in and outside Seychelles, be advertised in both the domestic and a foreign currency. 8.(1) Subject to subsection (2), payments to any person in Seychelles for goods and services provided in Seychelles shall be made in the domestic currency. (2) Notwithstanding subsection (I), any person may - (a) accept payment for goods or services provided in Seychelles in a foreign currency where payment in a foreign currency is made under a written law, is agreed to or is contractually stipulated by the parties; (b) offer to the person making a payment under paragraph (a), any money remaining after the transaction, in a foreign currency. (3) Any conversion of currency under subsection (2)(a) or (b) shall be calculated at the average traded exchange rate published by the Central Bank and the exchange rate shall be conspicuously displayed by the person accepting payment in a foreign currency. (4) A person who acquires any foreign currency under subsection (2) shall not sell such foreign currency to any person other than an authorised dealer. 9. A person who engages in or facilitates a foreign exchange transaction shall keep records of the transaction for a period of at least 7 years.

[20th July 2009] Supplemenl /0 Official Gazelle 10. The Minister or such other person authorised by the Ministermay- (a) require any document or information from any person in Seychelles; or (b) conduct on site inspection of any person in Seychelles; to ensure compliance with this Act and for such other purpose as it considers necessary including the collection of statistics. 11. (1) Aperson￾Ca) other than an authorised dealer, who performs the functions of an authorised dealer as a business in contravention of section 3; (b) who, being an authorised dealer, fails to conspicuously display at its exchange counter its exchang rates for t.~e buying and selling of foreign currency and other information as required by section 4; ( c) who makes or receives any payment or transfer other than through an authorised dealer in contravention of section 5; (d) who, being an exporter, accepts payment for goods and services exported from Seychelles other than in a convertible foreign currency in contravention of section 6; (e) who makes an advertisement in contravention of section 7; Cf) who makes or accepts payment for goods and serv ices provided in Seychelles in a foreign currency in contravention of section 8; (g) who accepts payments in a foreign currency under section 8(2) but fails to comply with . section 8(3); 103 Powers of Minister to ensure compliance with this Act Offences

\04 Supplement 10 Official Gazette [20th July 2009] (h) who sells any foreign currency acquired under section 8(2) to any person other than an authorised dealer in contravention of section 8(4); (i) who fails to keep records or to keep such records for the requisite period in contra￾vention of section 9; (j) who fails or refuses to produce any document or information when required to do so by the Minister or a person authorised by the Minister in contravention of section I Q( a); (k) who knowingly provides any document or information pursuant to section IO(a) that are materially false or misleading; or (I) who fails or refuses to comply with an order or directive of the Minister or a person authorised by the Minister pursuant to section I O(b), commits an offence and is liable on conviction to a fine not exceeding four hundred thousand rupees or to imprisonment for a term not exceeding one year. (2) Where an offence under this Act is committed by a legal person, and any of its directors or other officers knowingly authorises, permits or acquiesces in the commission of the offence, the director or other officer also commits the offence. Compounding 12. (I) The Minister may compound an offence under of offences section II _ (a) if the person charged with the offence admits to committing the offence; and (b) by accepting a sum of money not exceeding seventy-five percent of the maximum fine specified for the offence. (2) A sum of money received under subsection (1) (b) shall be dealt with as ifit were a fme imposed by a court.

[20th July 2009] Supplement to Official Gazette (3) Where an offence is compounded under subsection (l), no proceedings shall be initiated or continued against the person charged with the offence with regard to that offence. 13. An action, suit or other legal proceeding shall not lie against a person for anything done or omitted or purported to be done in good faith in the discharge, exercise or performance of the duties, powers or functions of the person under this Act. 14. The Minister may delegate to the Governor of the Central Bank any power or duty imposed on the Minister by this Act other than the power to make regulations and this power of delegation. 15. The Minister may make regulations for carrying into effect the purposes and provisions of this Act. 16. The Exchange Control Act, 1954, is repealed. I certify that this is a correct copy of the Bill which was passed by the NationalAssembly on the 30th June, 2009. Veronique Bresson Clerk of the National Assembly 105 Protection of acts done in good faith Delegation of powers of Minister Regulations Repeal of Cap 76