Foreign Exchange Control

Posted in Seychelles offshore jurisdiction at 1:28 pm by Robert Klien

All visitors in Seychelles are required to make payments in foreign currency – for lodging, hiring of cars and boats, tour operator and travel agent services, domestic and inter island services, visiting national parks and nature reserves. In most places credit cards are accepted as well.

Except with the permission of the Exchange Controller, exports from or imports into Seychelles of more than SR2,000.00 is a criminal offence.

Therefore, it is not obligatory for tourists to convert currency when entering the country. In fact, they can change only small amounts for their incidental expenses outside hotel and touristic places. The exchange of larger amounts of foreign currency, as well as traveler’s cheques, may be done only at Seychelles banks and at Bureau De Change and banks at the Seychelles International Airport.

The new foreign exchange laws were introduced by the Government in 2001. The Exchange Control Act and the Foreign Earnings Regulation Act were amended to decline the illegal foreign exchange activities and to ensure that all foreign exchange transactions are authorized and to a certain rate controlled by the Central Bank of Seychelles. From June 1, 2001 the Foreign Earnings Regulation Act (Cap 84A) established the Foreign Earnings Regulation Division of the CBS, which, in its turn, is headed by the Exchange Controller.

The division comprises of Auditors who are responsible for auditing the earners of foreign exchange. Auditing involves the analysis of information provided by the earners, as well as those obtained tfrom other divisions of the Central Bank and commercial banks, as directed by the Exchange Controller.

The main objective of the Foreign Earnings Regulation Division is to ensure that all foreign exchange entering the country legitimately goes through the banking system and allocation of the foreign exchange is fairly distributed by the commercial banks according to the directives issued to the banks.

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