Financial Crime World

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AML/KYC Best Practices in São Tomé and Principe: A Comprehensive Guide

In a bid to combat money laundering and terrorist financing, the government of São Tomé and Principe has implemented various measures to strengthen its anti-money laundering (AML) and know-your-customer (KYC) regime. As part of its efforts, the country has adopted the Financial Action Task Force (FATF) Recommendations, which serve as a global standard for combating money laundering and terrorist financing.

Ratings

São Tomé and Principe has been rated as “largely compliant” in several areas, including:

  • Assessing risk and applying a risk-based approach (R.1)
  • National cooperation and coordination (R.2)
  • Targeted financial sanctions related to terrorism and terrorist financing (R.6)

The country has also been commended for its efforts in implementing financial institution secrecy laws (R.9) and customer due diligence (R.10).

Key Recommendations

Some of the key recommendations made by the FATF include:

  • Enhancing customer due diligence requirements, particularly for non-profit organizations (R.8)
  • Strengthening record-keeping requirements (R.11) and reporting of suspicious transactions (R.20)
  • Improving internal controls and supervision of financial institutions (R.26) and DNFBPs (R.28)
  • Enhancing transparency and beneficial ownership requirements for legal persons and arrangements (R.24, R.25)

Best Practices

To ensure compliance with the FATF Recommendations, businesses operating in São Tomé and Principe should adhere to the following best practices:

  • Conduct thorough customer due diligence, including verifying the identity of customers and understanding their business relationships
  • Implement robust risk management systems to identify and mitigate potential money laundering and terrorist financing risks
  • Maintain accurate and detailed records of all transactions and activities
  • Report any suspicious transactions to the Financial Intelligence Unit (FIU)
  • Ensure that all employees are trained on AML/KYC procedures and are aware of their responsibilities in preventing money laundering and terrorist financing

Conclusion

São Tomé and Principe’s commitment to implementing AML/KYC best practices is a positive step towards combating money laundering and terrorist financing. By following the FATF Recommendations and adhering to best practices, businesses operating in the country can help maintain its reputation as a responsible financial center and contribute to the global fight against financial crime.