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LAWS OF SEYCHELLES
CONTROL AND PROTECTION OF CLIENTS' ACCOUNTS ACT
REVISED EDITION 1991
PRINTED FOR THE GOVERNMENT OF SEYCHELLES
CONTROL AND PROTECTION OF CLIENTS ACCOUNTS ACT Act 2 of 1979
Act 2 of 1990
(1st January, 1982)
ARRANGEMENT OF SECTIONS
1. Short title
3. Persons and classes of persons affected
4. Schedules persons' accounts
5. Client's money to be paid into a bank
6. What moneys to be paid into a client account
7. Withdrawing of moneys from a client account
8. What moneys need not be paid into a client account
9. Complaint in respect of non‑compliance
10. Evidence and deposit of cost before instituting inspection of account
11. Registrar of Companies may require production of scheduled person's books
12. Scheduled person to produce documents, etc.
13. Notice to scheduled person: how made
14. Registrar of Companies' steps on receipt of report
15. Attorney‑General may prosecute
16. Scheduled person to furnish particulars
17. Preservation of books of account
19, Consent of Attorney‑General
20. Saving of scheduled person's rights
22. Relief to banks
Short title 1. This Act may be cited as the Control and Protection of Clients' Accounts Act.
Interpretation 2. In this Act unless the context otherwise requires‑
"bank" means a bank licensed as a bank under the Financial
Cap. 79 Institutions Act and includes the Seychelles Saving Bank
Cap. 208 constituted under the Savings Bank Act;
"client" means any person on whose behalf moneys are received by a scheduled person;
"Auditor General" means the Auditor General appointed
Cap. 11 under the Audit Act;
"prescribed investment" means an investment prescribed by the Minister, for the purposes of section 5(2);
"Registrar of Companies" means the Registrar of Companies
Cap. 40 appointed under the Companies Act;
"scheduled person" means any person or class of persons set out in the Schedule.
Persons and 3.(1) This Act shall apply to the persons or classes of persons
classess of set out in the Schedule, notwithstanding that any particular person
persons or class of persons is governed by any other law.
(2) The Minister may, by order published in the Gazette, amend the Schedule by adding to or deleting therefrom any person or class of persons.
Schedules 4.(1) Every scheduled person shall keep such books and accounts
persons' as may be necessary to show and distinguish in connexion with his
accounts business or profession‑
(a) the moneys received from or on account of and the moneys paid to or on account of each of his clients; and
(b) the moneys received and the moneys paid on his account.
(2) All such books and accounts shall be audited once a year by the Auditor General or some public officer appointed by the Auditor General, who shall report the results of his audit to him.
(3) The Auditor General shall issue a Certificate of Auditor in such form as may be prescribed.
Client's money 5.(1) Subject to subsection (2), a scheduled person who holds or
to be paid receives moneys on account of a client, (save moneys hereinafter
into a bank expressly exempted from the application of this section), shall immediately pay such moneys directly into a current or deposit account at a bank to be kept in the name of the scheduled person in the title of which the word "client" shall appear (hereinafter referred to as "a client account"); a scheduled person may keep one client account or as many such accounts as he thinks fit:
Provided that, when a scheduled person receives a cheque or draft representing in a part moneys belonging to the client and in part moneys due to the scheduled person, he may, where practicable, divide the amount of the cheque or draft and pay to the client account that part only which represents moneys belonging to the client, and in any other case he shall pay the whole of such cheque or draft directly into the client account.
(2) Where moneys are received by a scheduled person on behalf of a client and such moneys are likely to remain in the possession or under the control of the scheduled person for a period exceeding 90 days, the scheduled person shall invest the same in prescribed investments in the joint names of the scheduled person and the client.
What moneys 6. No moneys shall be paid into a client account or prescribed
to be paid into investment other than ‑
account (a) moneys held or received on account of a client;
(b) such moneys belonging to the scheduled person as may be necessary for the purpose of opening or maintaining the account or investment;
(c) moneys for replacement of any sum which may by mistake or accident have been drawn from the account or investment in contravention of section 7;
(d) a cheque or draft received by the scheduled person representing in part moneys belonging to the client and in
part moenys due to the scheduled person where such cheque or draft has not been divided as provided for in section 5.
Withdrawing 7. No moneys shall be drawn from a client account or prescribed
of moneys investment other than‑
from a client
account (a) moneys properly required for payment to or on behalf of a client or for or towards payment of a debt due to the scheduled person from a client or moneys drawn on the client's authority, or moneys in respect of which there is a liability of the client to the scheduled person provided that the moneys so drawn shall not in any case exceed the total of the moneys so held for the time being for such client;
(b) such moneys belonging to the scheduled person as may have been paid into the account or investment under paragraph (b) or (d) of section 6;
(c) moneys which may by mistake or accident have been paid into such account or investment in contravention of section 6.
What moneys 8. Sections 5,6, and 7 shall not apply to moneys which ‑
need not be
paid into a (a) the client, for his own convenience, requests, in writing, a
client account scheduled person to withhold from a client account or prescribed investment;
(b) in the ordinary course of business upon receipt are paid on behalf of the client to a third party;
(c) are upon receipt paid to the client;
(d) are paid to a scheduled person on account of costs, expenses or fees;
(e) the Registrar of Companies upon application made to him in writing by a scheduled person specifically authorizes to be withheld or withdrawn from a client account or prescribed investment.
Complaint in 9. If a scheduled person fails to comply with section 4,5,6,7,
respect of non‑ or 8, any person aggrieved thereby may make a complaint in
compliance writing in respect of that failure to the Registrar of Companies.
Evidence and 10. Before instituting an inspection on a complaint made by a
deposit of person other than a client the Registrar of Companies shall require
cost before prima facie evidence that a ground of complaint exists and may
instituting require the payment by such person to him of a reasonable sum to
inspection of be fixed by him to cover the costs of inspection and the costs of the
account scheduled person against whom the complaint is made.
Registrar of 11. The Registrar of Companies, acting either on his own motion
Companies or on a written complaint lodged with him in accordance with
may require section 9, may require any scheduled person to produce, at some
production convenient time and place, his books of account, bank pass books,
of scheduled statements of account, vouchers and any other necessary documents
person's for his inspection or the inspection of the Auditor General, and
books General carries out such an inspection he shall prepare for the
2/2/1990 where the Auditor information of the Registrar of Companies a report on the result of such inspection.
Scheduled 12. Every scheduled person shall when required to do so for the
person to purpose of sections 4 and 11 produce any books of account, bank
produce passbooks, statements of account, vouchers and any other
documents, etc. documents to the Registrar of Companies or the Auditor General.
Notice to 13. Every requirement, authorization and notification to be made
scheduled or given by the Registrar of Companies to a scheduled person shall
person: how be made in writing by the Registrar of Companies or the Auditor
made General and left at or sent by registered post to the last address of
2/2/1990 the scheduled person supplied pursuant to section 16, and, when so made and sent, shall be deemed to have been received by the scheduled person within 48 hours of the time of posting.
Registrar of 14. The Registrar of Companies, on receipt of a report made to
Companies' him under section 9 or after he shall have conducted his own
steps on inspection or after he has taken action under section 11, may either
receipt of take no further action thereon or may refer the matter to the
Attorney‑General 15. The Attorney‑General may, if he sees fit, prosecute any
may prosecute scheduled person whether or not the matter has been referred to him by the Registrar of Companies, if such scheduled person has committed a breach of this Act.
Scheduled 16.(1) Notwithstanding anything contained in any other law every
person to person qualifying for inclusion in the Schedule hereto shall within
furnish 3 months of the commencement of this Act and by the 1st January
particulars in each year thereafter, furnish to the Registrar of Companies full particulars of his name, address and business and, where a person is
trading or carrying on business under a business name, the names of all the persons carrying on such business and, where the business is a corporate body, the names of all the directors of the business and the address of the registered office in Seychelles.
(2) Any person who qualifies for inclusion in the Schedule at any time after the commencement of this Act shall furnish the particulars required under subsection (1) and in the same manner within 3 months of so qualifying and by 1st January in each year thereafter.
Preservation 17. Every scheduled person shall preserve for at least 6 years
of books of from the date of the last entry therein all books and accounts kept
account by him under section 4.
Penalties 18. Any person who contravenes any of the provisions of this Act shall be guilty of an offence and be liable to a fine of R.10,000 and to imprisonment for 5 years.
Consent of 19. No prosecution shall be commenced under this Act without
Attorney‑ the consent in writing of the Attorney‑General.
Saving of 20. Nothing in this Act shall deprive a scheduled person of any
scheduled resource or right, whether by way of lien, set‑off, counterclaim,
person's charge or otherwise, against moneys standing to the credit of a
rights client account or prescribed investment.
Regulations 21. The Minister may make regulations for the carrying out of any of the purposes or provisions of this Act, may prescribe fees and charges, and may impose penalties for breach of such regulations not exceeding the penalties prescribed in section 18.
Relief to 22. Subject to this section, no bank shall, in connexion with any
banks transaction on any account of any scheduled person kept with it or with any other bank, incur any liability or be under any obligation to make an inquiry or be deemed to have any knowledge of any right of any person to any money paid or credited to any such account which it would not incur or be under or be deemed to have in the case of an account kept by a person entitled absolutely to all moneys paid or credited to it:
Provided that nothing in this subsection shall relieve any bank from any liability or obligation to which it would be subject apart from this Act.
(2) Notwithstanding anything in subsection (1) a bank at which a scheduled person keeps an account for clients' moneys shall not, in respect of any liability of the scheduled person to the bank, not being a liability in connexion with the account, have or obtain any resource or right, whether by way of set‑off, counter claim, charge or otherwise, against moneys standing to the credit of that account.
SCHEDULE Section 3
Accountants in professional practice in Seychelles
Attorneys in professional practice in Seychelles
Barristers in professional practice in Seychelles
Estate agents in professional practice in Seychelles.
NO SUBSIDIARY LEGISLATION