Guideline on Restriction on Payment of Dividend

CENTRAL BANK OF SEYCHELLES
P. O. Box 701, Victoria, Seychelles
Telephone: [+248] 428 20 00 Ref: FSD/GEN/1
Fax: [+248] 432 36 65 FSD/CR/14
FSD/FIA/4
E-mail: enquiries@cbs.sc Date: July 4, 2023
TO ALL BANKS
Guideline on restriction on payment of dividend The Central Bank has re-assessed its current procedure in relation to section 31 of the Financial Institutions Act 2004, as amended (FIA) and has determined that a change in process is warranted. As from today, requests in line with section 31 of the FIA should be supported by an analysis showing that the approval will not cause the financial institution to be in breach of the afore￾mentioned section of the FIA. In essence, the analysis should:

1. provide confirmation that all capitalised expenses and items of expenditure not represented
   by tangible assets have been written off;
2. demonstrate that the payment of dividend or any other transfer from profits will not cause
   the bank to be in contravention of the requirements in capital adequacy, reserve fund, liquidity or any other prudential requirement deemed relevant or likely to impair the future capital adequacy or liquidity of the bank; and
3. provide confirmation that provisions have been made in respect of impaired credits.
   The Central Bank trusts in your co-operation for adherence with the new procedures articulated in this Guideline. Yours sincerely,
   C. Abel (Ms)
   Governor