Regulatory Alerts2026-08-14
Added · Updated
Circular No. 5 of 2026 - Reminder of Restrictions under Section 5 of the International Business Companies Act, 2016
All International Business Companies (IBCs) incorporated under the International Business Companies Act, 2016 (IBC Act) are reminded of restrictions under Section 5 of the IBC Act and the Virtual Asset Service Providers Act, 2024 (VASP Act). IBCs are prohibited from conducting various regulated activities, including banking, insurance, securities, mutual fund, gambling, and virtual asset services, in or outside Seychelles without the requisite license or authorization from applicable laws or the relevant foreign jurisdiction. Incorporation under the IBC Act does not substitute for such licenses, and IBCs must disclose the authority under which they operate to clients and the public, avoiding any impression of Financial Services Authority endorsement solely by virtue of Seychelles incorporation. Non-compliance with Section 5 of the IBC Act may result in a fine up to USD 50,000, while contraventions of VASP Act Sections 5 or 27 may incur fines up to SCR 5,250,000.