The Foreign Earnings Regulations Division in the Ministry of Economic Planning, has reiterated that it is an offence for craft vendors to demand or accept payment in foreign currency for items sold to foreign visitors.

Speaking to Business Nation, Mr Ahmed Monguno, the legal adviser in the Ministry, said there had been a few cases where craft vendors had been illegally accepting payments in foreign currency, especially when there are military vessels or cruise ships in the port.  Craft businesses, he said, were not authorised under the Foreign Regulations Act to make any transaction in foreign currency.

The businesses that are allowed to make transactions in foreign currency as well as retain 15% of their earnings include hotels, guest houses, self-catering establishments, luxury villas, tour operator, travel agent, car hire operator, Helicopter Seychelles, Air Seychelles, hire-craft operators of crafts which are 6 metres or above in length, diving business, casinos, cruise ships temporarily operating in Seychelles under the licence issued by the Seychelles Licensing Authority (SLA) and national parks and nature reserves.

Craft vendors who are approached by visitors in possession of foreign currency should encourage them to go to the banks to change their money into rupees, before making any transactions with them, Mr Monguno said.

According to him craft vendors are not covered under the Act, because a feasibility study carried had shown that it was not easy to set up a mechanism to monitor the foreign currency transaction in that particular trade.

All hotels, tour operators and other tourism-oriented establishments are being encouraged to inform their clients about the foreign currency regulations.

The penalty for any business or individual found in possession of unauthorised foreign currency is a minimum fine of R250,000 and a maximum fine of R500,000 or a term of imprisonment.

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