Regulatory Alerts2020-09-09
Central Bank of Seychelles Notice 4 of 2020 Amending Financial Institutions Act 2004
The Central Bank of Seychelles issued Notice 4 of 2020 to modify the Financial Institutions Act 2004 for all licensed banks. The amendment expands sub-section 29(4)(a) to explicitly include government transactions and guarantees, specifically covering credits granted under a designated Covid-19 relief scheme. This modification authorizes banks to channel Central Bank advances directly to pandemic-affected customers through these government-backed financing arrangements.
Central Bank of Seychelles FINANCIAL INSTITUIONS ACT (Cap 79) NOTICE No.4 of 2020 31st August, 2020 In exercise of the powers conferred by section 74A(1) of the Financial Institutions Act, 2004, as amended, the Central Bank of Seychelles hereby makes the following Notice – The Financial Institutions Act 2004, as amended shall apply to all banks with the following modification to sub-section 29(4)(a) - “a transaction with, or guaranteed by, the Government including credits granted under a relief scheme whereby a guarantee has been granted by the Government to the Central Bank, or a foreign Government;” For the purpose of this Notice, a relief scheme is a scheme established for banks to provide financing from advances obtained from Central Bank, to customers affected by the Covid19 pandemic. Dated this 31st day of August, 2020. CAROLINE ABEL GOVERNOR