Seychelles Offshore Banking
In the past 37 years as institutions have evolved due to rapid development of the economy, the banking sector in Seychelles has proportionately changed. Seychelles' over 80,000 citizens are serviced by six commercial banks, which are regulated by the Central Bank in Independence Avenue, Victoria. These commercial banks are required to renew license annually in compliance to the regulation. In the late 1950s, Barclays was the first to open a bank branch in which prior to its opening, Temoljees, a local trading company effectively handled banking. The latest commercial bank established in 1998 was the Seychelles Savings Bank (SSB) which operated by lending small amounts to individuals under the Savings Bank Act. With the Financial Institutions Act however, it was given permission to provide corporate clients with working capital.

Seychelles banking system is refined and is comparable to most developed countries. The Seychellois have easy access their own bank accounts including credit and debit cards as well as automated teller machines (ATMs). With a sophisticated system available, SSB strives to provide a range of transactions to be carried out even being physically present in the bank. This covers a wider range of bank account types – current, call deposits, savings mechanisms, fixed deposits, loan accounts and all major credit cards.

The current legislation in Seychelles encourages foreign investments and profitable economic endeavors including offshore banking.

The International Business Companies Act of 1994 governs the operations of offshore companies in Seychelles. Although comparable to other offshore legislation, it presents on the other hand more flexibility than other jurisdictions where stricter provisions have made it more difficult for companies to operate, a case in point the British Dependant Territories being brought under the laws of the EU.

Offshore companies in Seychelles can choose any name to use as long as it is not similar to those that already exist or is specifically prohibited name like: Chamber of Commerce, Insurance, Building Society, Bank or any other words that may implicate connection to the Government or Royal Family. The company name can assume any language as well as use any suffix pertaining to Limited Liability, namely: Incorporation or Inc., Corporation or Corp., GmbH, SA or likewise. For the offshore company’s management, at least one Director that is a natural born person who maybe of any nationality and may reside anywhere or a Corporation. A service provider can provide a nominee Director if desired or necessary where some charge no extra cost. For meetings and General Assemblies, an annual General Meeting is not a requirement and Directors may choose to hold meetings in any country they so choose.

What are some of the latest movements on offshore banking in Seychelles? Just recently in July, the BMI Offshore Bank (BMIO) has officially launched its operations. After having been granted a license by the Central Bank of Seychelles, BMOI envisions providing private and offshore banking services as well as investment and trust services for private and corporate clients residing overseas.

To fulfill this objective, the initial stages will offer investment and deposits on different terms, internet banking facilities and transactional banking ranging from call to current accounts. Other investment products will gradually be introduced like loan financing, trust business, Debit, and Credit Cards.

Why will offshore banking be lucrative in Seychelles? Aside from the Seychelles government gearing legislative support to offshore banking, it has become one of the major thrust in the country’s economic and investment program. Infrastructures and facilities necessary to support the industry are steadily becoming entrenched. The transportation necessary for an easy access to Seychelles is expanding as the airport and cargo facilities is known as one of the finest in the Indian Ocean Region. Various international airlines have joined the nation flag carrier, Air Seychelles scheduling flights to Zurich, Rome, Bahrain, Nairobi, Singapore, London, Paris, Johannesburg, Frankfurt, Madrid, Mauritius, Dubai and Reunion. International and national telecommunications are established being operated by Cable & Wireless (Seychelles) Limited, which is a pat of Cable & Wireless PLC., London. The company covers a nationwide telecommunications network installing special standard "A" earth station in Victoria and on other islands standard "D" earth stations.