Seychelles Prosecutes First Money Laundering Case Against Elites from Pandora Papers

Seychelles, known for being a tax haven, was recently removed from the EU’s blacklist and is pursuing a massive money laundering case against a couple mentioned in the Pandora papers.

Following an unprecedented hearing, Mukesh Valabhji was sentenced to imprisonment for alleged money laundering of $50 million. Being one of Seychelles’ wealthiest individuals, Valabhij negatively contributes to the East African nation’s reputation of being a hub for financial crime.

According to local news reports, Valabhij was arrested last month when he got off his helicopter while returning from his hotel on the private island of Felicite. Police also seized weapons from his home, taking him and his wife, Laura Alcinder Valabhij, into custody.

The arrest was made on suspicion of embezzlement and money laundering worth millions of dollars through donations to the Seychelles government from the United Arab Emirates.

The anti-corruption commissioner of Seychelles, May De Silva, told the International Consortium of Investigative Journalists, “Mr. Valabhji and his wife have been arrested on suspicion of embezzling (Mr. Valabhji) those funds and laundering (with the help of his lawyer wife Laura Valabhji) over a period of 19 years.”

Although the Seychelles News Agency did not name the arrested couple, they provided information on the network of companies that enables the money to move in and out of the country. These include a tourism company directed by Mukesh Valabhji and also a state-owned hotel.

Valabhji, who is the founder of an investment company, a telecommunication and hotel business owner, and an advisor to a former president of Seychelles, still denies the allegations. The couple told the Seychelles News Agency that the case against them is politically motivated.

However, transparency advocates consider this case as a fundamental effort by Seychelles to clear off the stains on its reputation for corruption and money laundering. 

Suggested read: Pandora Papers Update: Offshore Havens and Money Laundering Scandals Exposed