04.12.2009 

The government has rejected allegations that it has seized funds held in an account in Seychelles by a company called LXE Solar Incorporated and its owner George Xiao.

The allegations were made by PR Newswire in the United States on behalf of Mr Xiao and under the headline “Lawsuit charges Seychelles government with financial piracy”.

The President’s Office said in a press release yesterday that the funds were not “seized” by the government but frozen, and the article’s accusations are unfounded, defamatory and incorrect, and no part should be considered as credible information. No attempt was made to contact the Seychelles government or the Financial Intelligence Unit (FIU) for clarification.

The government has taken a powerful stance against international money laundering and has started enforcing new laws to stop the flow of money from the hands of criminals into legitimate businesses and bank accounts, and so ensuring the continued success of the Seychelles jurisdiction as a clean offshore financial centre, the press release added. 

The government established the Financial Intelligence Unit to meet its international responsibilities in relation to anti-money laundering laws and the financing of terrorism.

This year Seychelles’ legislation was amended to give the FIU the power to investigate suspected money laundering through Seychelles’ jurisdiction and to apply to the courts for lawful orders to freeze funds reasonably suspected of being the proceeds of crime.

The FIU is now conducting investigations with equivalent agencies and the law enforcement agencies of other countries, including the US.

Seychelles is a jurisdiction which is serious about ensuring a strong framework of financial security and is ready to investigate suspicious transactions, the President’s Office said.

The FIU, in collaboration with international law enforcement partners, is investigating an account held by LXE Solar Incorporated. The funds held in its account have been frozen on the basis of evidence presented to the Supreme Court in Seychelles.

The government is now reviewing the complaint lodged against it in the US District Court and will give a more detailed response in the near future.