National Payment System Act, 2014 (Seychelles)

The National Payment System Act, 2014 is the principal statute governing payment, clearing and settlement systems in Seychelles, administered by the Central Bank of Seychelles (CBS). It provides the legal framework for the regulation, oversight and modernisation of the national payment system so as to deliver a safe, reliable and efficient system, and it underpins the CBS's supervision of payment service providers (PSPs) and electronic payment arrangements. The Act has been kept current, most recently through amendments made by Act 15 of 2023 (reflected in the CBS's consolidated text). Scope and applicability: the Act applies to payment systems and to payment service providers, both domestic and foreign, that conduct payment business with Seychelles residents. It empowers the CBS to license and oversee PSPs, to designate and oversee payment systems, to require information and reporting, and to make regulations on any matter the Act requires or permits. The CBS may make regulations to give detailed effect to the Act. Core obligations: payment service providers must satisfy the CBS's prudential and conduct requirements, which include minimum net-worth requirements, provision of a surety bond as required by the regulator, and submission of a detailed AML/KYC compliance programme together with audited financial statements. PSPs must file quarterly and annual financial reports and submit suspicious activity reports (SARs) within CBS deadlines. Where a PSP provides payment services (including funds transfers and cash deposits) through an agent or third party, it must guarantee to the CBS that the agent or third party will comply with AML/CFT requirements. The Act provides for settlement finality and the integrity and security of payment processes. Supervision and enforcement: the CBS oversees PSPs and payment systems through licensing, reporting, inspection and audit, and may impose conditions, corrective measures, and suspension or revocation of authorisation for non-compliance. Operating a payment system or providing payment services without the requisite authorisation is prohibited. As the umbrella legislation, the Act anchors Seychelles's payments and emerging fintech regulation and the CBS's financial-inclusion and payment-modernisation initiatives.

1. 1Establishes the Central Bank of Seychelles as regulator and overseer of the national payment system
2. 2Applies to domestic and foreign payment service providers dealing with Seychelles residents
3. 3Empowers the CBS to license PSPs, designate/oversee payment systems and make implementing regulations
4. 4PSP requirements: minimum net worth, surety bond, AML/KYC compliance programme and audited financial statements
5. 5Reporting duties: quarterly and annual financial reports and suspicious activity reports within CBS deadlines
6. 6Agents/third parties permitted only with a PSP guarantee of their AML/CFT compliance
7. 7CBS may inspect, condition, suspend or revoke authorisations; amended by Act 15 of 2023