CBS explains amendments to foreign exchange law |14 September 2010

In total five amendments were approved, some of them dealing primarily with definitions and aiming to bring more clarity to the law. The second set is aimed at helping and simplifying the operations of businesses and individuals affected by the law.

The first amendment is in Section 2 of the Act, in which the terms “current international transactions” and “international capital transactions” have been removed. Instead all transactions covered under the FEA are now captured under the definition of “international transactions”, still in Section 2.

Another amendment, in Section 5, removes uncertainty regarding the use of accounts held overseas for payment by residents. This new amendment clarifies that it is not in contravention of the law to use an overseas account for payments to and receipts from Seychelles, in respect of an international transaction.

An amendment to Section 7 strengthens the requirement for invoicing in Seychelles rupees for goods and services used in Seychelles.

The two other amendments approved by assembly will ease business operations. Firstly, Section 3 has been amended so that hotels and guesthouses can now change a small amount of foreign currency for their clients without needing a bureau de change licence. This amount will be prescribed by the CBS through regulations.

Finally, Section 8 has been amended so that businesses are no longer required to apply the exchange rates published by the CBS. Instead, businesses can apply the exchange rate of one of the commercial banks and are free to add a commission charge to avoid exchange losses.