Foreign Earnings (Regulation) Act

Chapter number: 
84A
In force: 
No

This Act has been repealed by the Foreign Earnings (Regulation) Repeal Act, Act 26 of 2008.  The text below is reproduced for reference purposes only.

 

 

                                                                                                CHAPTER 84A

                            FOREIGN EARNINGS (REGULATION) ACT

 

Act 23 of 1996

SI. 99 of 1996

Act 4 of 1999

Act 3 of 2001

[23rd December, 1996]

 

ARRANGEMENT OF SECTIONS

Section

1.       Short title

2.       Interpretation

3.       Remittance or offer for sale of foreign earnings

4.       Repealed by Act 3 of 2001

5.       Accounting records

6.       Right of inspection

6A     Offences by bodies corporate

6B     Aiding, abetting etc.

7.       Regulations

8.       Exemption

9.             Court to give priority

10.         Indemnity

11.         Compounding of offences

Schedule

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Short title          1.  This Act may be cited as the Foreign Earnings (Regulation) Act and shall come into operation on the 1st January 1997.

Interpretation    2.    In this Act -

"designated currency" means a currency, other than Seychelles currency, designated by the Minister under section 3 (6);

"financial institution" means a financial institution within the meaning of paragraph (a) of the definition of financial institution  in section 2 of the Financial Institutions Act;

"non-resident" means a person who is not resident in Seychelles, a person who holds a visitor’s permit under section 16 of the Immigration Decree, a person specified in the Schedule, such person as the Minister may by regulations prescribed and includes any person in or resident in Seychelles who engages in a trade, business or activity with another such person for or on behalf of or for the benefit or purpose of any person not resident in Seychelles.

 

 

Remittance or   3. (1)  Notwithstanding anything in the Exchange Control Act or

offer for sale     any order made thereunder, every person, not being a financial

of foreign          institution  or any  person  specified in the Schedule, who engages

earnings            in any trade, business or activity with a non-resident shall, require the non-resident to cause any payment made by the non-resident in respect of the trade, business or activity to be made in a designated currency and cause, within such period as is specified in subsection (2), the designated currency so paid to be remitted or offered for sale to a financial institution:

 

   Provided that, the acceptance by a person of payment in Seychelles currency made by a non-resident being a holder of a visitor’s permit under section 16 of the Immigration Decree in respect of a transaction for the supply or provision of goods or services to such non-resident for his personal use or benefit during his visit shall be deemed not to be a contravention of this section unless such transaction is with a supplier or provider or goods or services as may be prescribed by the Minister by notice in the Gazette.

 

(2) The period referred to in subsection (1)  shall be a period of 90 days from the date the person engages in the trade, business  or activity or a period of 21 days from the date of payment, whichever is earlier, or such other period as the Central Bank may, having regard to the circumstances of any particular case, determine.

 

(3) Where the Central Bank is satisfied that designated currency remitted or sold under subsection (1) falls short of the true value  of the payment made in respect of the trade, business or activity engaged in, the Central Bank may require the remittance or sale within such period as the Central Bank may determine, of such amount of designated currency as is required to make up the short fall.

 

(4) The currency remitted or offered for sale under subsection (1) or remitted or sold under subsection (3) shall be paid by the financial institution in Seychelles currency to a bank account nominated by the person engaging in the business, trade or activity in respect of which the currency is remitted or offered for  sale or sold, at the rate determined by the Central Bank for buying and selling designated currency, being the rate prevailing on the date the payment is remitted or offered for sale or sold.

 

 

Act 3/2001        (5) Any person who contravenes subsection (1) or  without reasonable cause fails to comply with a requirement under subsection (3) is guilty of an offence and is liable on conviction  to a fine of not less than R200,000 and not exceeding R500,000 and imprisonment for 5 years and  in addition the court shall order the person to pay a penalty equal to the amount of the payment not remitted or offered for sale or sold under subsection (1) or subsection (3).

 

(6)   The Minister may for the purposes of this Act, by order published in the Gazette,  designate a currency, other than Seychelles currency, as a designated currency.

 

4.  Repeal by Act 3 of 2001

 

 

Accounting       5. (1)  Every person who engages in any trade, business or

records              activity with a non-resident shall keep such accounting and other records as would sufficiently explain the transactions with the non-resident or with any such person as may be specified by the Central Bank by notice and shall cause those records to be kept in such manner as may be directed by the Central Bank and to be retained for a period of 7 years after the completion of the transactions.

Act 3/2001

(2)     Every person referred to in subsection (1) shall  for each six monthly period in each year or such shorter period as the Central Bank may, in any particular case, determine send to the Central Bank within such time after the expiration of the period as may be notified by the Central Bank a statement, in such form as may be determined by the Central Bank, of the transactions and payments made or due in respect of those transactions.

 

(3)     Any person who contravenes subsection (1) or subsection (2) is guilty of an offence and is liable on conviction to a fine of not less than R100,000 and not exceeding R500,000 and imprisonment for 2 years.

 

 

Right of            6.(1)  The Central Bank may, if it considers necessary or desirable

inspection         to ascertain whether any person referred to in section 3 is complying  with the provisions of this Act, cause an inspection of the accounting and other records kept under section 5 by that person to be made by an officer of the Central Bank.

 

(2)     Any officer of the Central Bank may, in exercise of the powers under subsection (1) -

 

 

(a)  require the person whose accounting and other records are inspected or any officer or employee of that person to furnish such information considered necessary for the inspection;

 

(b)  require the person, officer or employee to produce for inspection any books, records or other documents containing or likely to contain such information or where the information is recorded in a computer data bank, disc or tape, to produce such information in a readable form to the satisfaction of the officer;

 

(c)  require any other person to furnish any information within the person's knowledge relating to the accounting and other records inspected under subsection (1) or any transaction relating thereto.

 

(3)    For the purpose of subsections (1) and (2), any officer of the Central Bank may, at any time, enter any premises in which the accounting and other records are kept or likely to be kept.

 

Act 3/2001        (3A) Notwithstanding anything to the contrary in any other law, the Central Bank shall have the power -

 

(l)     to require any director, officer or employee of any bank or other financial institution to furnish to the Central Bank such information and data as it may consider necessary to ascertain whether any person is complying with the provisions of this Act;

 

(m)to periodically or at its discretion cause an inspection to be made by any of its officers or by any other qualified person appointed for the purpose by the Central Bank, of any bank or other financial institution and its book and accounts for the purpose of ensuring compliance with the provisions of this Act.

 

(3B)   Notwithstanding anything to the contrary in any other law the Central Bank may use any information obtained by the Central Bank under the provisions of this Act for or in relation to any inquiry or trial of any offence under this Act.

 

(4)        Any person who -

 

 

(a)   fails, refuses or unreasonably delays to comply with any requirement under subsection (2) or subsection (3A); or

 

(b)   in complying with any such requirement -

 

(i)    wilfully furnishes any information or produces any books, records or other documents which the person knows to be false or misleading;  or

 

(ii)   recklessly furnishes any information or produces any books, records or other document which is false or misleading  in a material particular; or

 

(dd)with intent to evade the provisions of this Act, destroys, mutilates, defaces, secretes or removes any documents, or

 

(n)       hinders, obstructs or prevents  the exercise of the functions under subsection (1) or subsection (2) or subsection (3A),

 

is guilty  of an offence and is liable on conviction to a fine of not less than R100,000 and not exceeding R500,000 and imprisonment for 2 years.

 

Act 3/2001        (5) An officer of the Central Bank may, with such assistance as he deems necessary, enter and search any premises in which he reasonably suspects there is to be found any evidence of non- compliance with the provisions of this Act, and seize and detain any such evidence found therein.  The officer may use such force as is reasonably necessary in the circumstances.

 

Offences           6A.  Where a body corporate commits an offence under this Act,

by bodies          the director, manager, secretary or similar officer of the body

corporate           corporate, or any person purporting to act as such officer, or where

Act 3/2001        the body corporate is managed by its members each of the members, shall be deemed to be guilty of the offence unless he proves that the offence was committed without his consent or connivance and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised having regard to the nature of his functions in that capacity and to all the circumstances.

 

Aiding              6B.  A person who

abetting etc

Act 3/2001                 (a)    aids, abets, counsels, incites or procures another person to commit or conspires to commit an offence under this Act;

 

(b)       does or omits to do any act for the purpose of enabling another person to commit an offence under this Act;

 

(c)        attempts to commit or does any act preparatory to or in furtherance of an offence under this Act,

 

is guilty of an offence and liable to the punishment provided for the offence and he may be charged with committing the offence.

 

Regulations       7.(1)   The Minister may make regulations for carrying into effect the principles and provisions of this Act and for   matters required to be prescribed under this Act.

 

(2)  The Minister may by regulations -

 

(a)        exempt any class of persons in Seychelles who engage in any trade, business or activity with non-residents from the application of section 3(1); and

 

(b)       amend the Schedule.

 

(3)    Where the Minister  under subsection (1) amends the Schedule for the  purpose of deleting any person from the Schedule, the amendment shall not affect a person who immediately before the coming into force of the amendment was a person specified in the Schedule.

 

(4) Regulations made under subsection (1) may provide for offences and for the imposition of penalties and forfeitures for such offences:

 

   Provided that, any such penalty shall not exceed a term of imprisonment of five years or a fine of R500,000.

 

 

Exemption        8.(1)   The Minister may, having regard to any undertaking given by the Government, by order published in  the Gazette, exempt any person from the provisions of this Act.

 

(2) The Central Bank, where it is satisfied that any person specified in the Schedule has an external account in terms of the Financial

Cap. 79             Institutions Act, exempt any transaction or class of transactions with the person from the provisions of section 3.

 

 

(3) The Central Bank may, upon application being made in that behalf by any person exempt in writing any person or transaction from the provisions of section 3(1).

 

Court to            9.  Every court shall give priority to the trial of any person charged

give priority      with an offence under this Act and to the hearing of any appeal from the conviction of any such offence or sentence imposed on such conviction.

 

Indemnity         10.  Neither the Central Bank, nor any member of its Board of Directors, nor the Exchange Controller, officer, employee or agent of the Central Bank shall be subject to any action, claim or demand by, or liability to, any person in respect of anything done or omitted to be done in good faith under or in execution or intended execution or in connection with the execution of any power or duty conferred on the Central Bank by or under this Act.

 

Compounding   11.(1) The Central Bank may, if it is satisfied that an offence under

of offences       this Act has been committed by a person and if that person admits the commission of the offence and agrees in writing to its being dealt with under this section, compound the offence by accepting a sum of money not exceeding the maximum fine specified for the offence.

 

(2) Any sum of money received under this section shall be dealt with as if it were a fine imposed by Court.

 

(3) Where an offence is compounded under this section no proceedings shall be instituted in relation to that offence against the person referred to in subsection (1).

 

SCHEDULE

1.      An International  Business Company incorporated under the  International Business Companies Act.

2.      A holder of a licence under the International Trade Zone Act to carry on business in an International Trade Zone declared under that Act.     

3.      A person carrying on non-domestic insurance business under the Insurance Act  in respect of transactions connected with such non-domestic insurance business.

4.      An export oriented unit within the meaning of the Investment Promotion Act and granted a certificate of approval under that Act.

5.      An International Trust declared and registered under section 25 of the International Trusts Act.

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SI. 17 of 2001                                 Section 3

 

Foreign Earnings (Regulation) (Provider or supplier of

goods or services) Notice

 

(28th May 2001)

 

Citation              1.   This Notice may be cited as the Foreign Earnings (Regulation) (Provider or supplier of goods or services) Notice.

 

Prescribed          2.  The trade, business or activity with a provider or supplier of

list of provider   goods or services specified below are prescribed transactions.

or supplier of

goods or

services                         (a)     Hotel

(d)          Guesthouse

(e)           Self Catering Establishment

(f)           Luxury Villa

(g)          Tour Operator

(h)          Travel Agent

(i)            Car Hire Operator

(j)            Helicopter Seychelles

(k)          Air Seychelles

(l)            Hirecraft Operator of crafts of 6 meters or above in length

(m)        Diving business

(n)          Casino

(o)          Cruise Ship temporarily operating in Seychelles waters under licence issued by the Seychelles Licensing Authority.

 

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Section 3(6)

SI. 23 of 2002

Foreign Earnings (Designated Currency) Order

 

(8th April 2002)

 

Citation              1.  This Order may be cited as the Foreign Earnings (Designated Currency) Order.

 

Designated        2.  Each currency specified in the Schedule hereto shall be a

currency             designated currency for the purpose of the Act.

under

 

Cap 84 A

 

Revocation        3.  The Foreign Earnings (Designated Currency) Order, 1996 is

SI 100 of 1996  hereby revoked.

 

Schedule

 

Australian                  dollar

Canadian                   dollar

Danish                       kroner

Euro

Hong Kong                           dollar

Japanese                    yen

Norwegian                 kroner

Singapore                  dollar

Swedish                     kroner

Swiss                                     franc

UK                            pound

US                             dollar

 

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SI 14 of 2002                                   Section 3(1)

 

Foreign Earnings (Prescribed Service) Notice

 

(15th April, 2002)

 

Citation              1.  This Notice may be cited as the Foreign Earnings (Prescribed Service) Notice, 2002.

 

Service               2.  The admission of persons to national parks and nature reserves

prescribed          shall be prescribed service for the purpose of the proviso to section

under proviso     3(1) of the Foreign Earnings (Regulation) Act and, accordingly, all

to section 3(1)    payments of entrance fees and landing fees of national parks and

of Cap 84 A       nature reserves made by or on behalf of non-residents shall be made in a designated currency.

 

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