Financial Crime World

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Sao Tome and Principe Eyes Compliance with AML/CFT Regulations for Cryptocurrencies

The Financial Intelligence Unit (FIU) of Sao Tome and Principe has released its latest technical compliance report, highlighting the country’s efforts to implement Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations for cryptocurrencies.

Progress in Implementing FATF Recommendations

According to the report, Sao Tome and Principe has made significant progress in implementing the recommendations of the Financial Action Task Force (FATF), with ratings ranging from compliant to partially compliant across various requirements.

Compliant Requirements

  • Assessing risk
  • National cooperation and coordination
  • Money laundering and terrorist financing offences
  • Confiscation and provisional measures
  • Targeted financial sanctions related to terrorism and proliferation
  • Non-profit organisations

Partially Compliant Requirements

  • Customer due diligence
  • Record keeping
  • Politically exposed persons
  • Correspondent banking
  • Reporting of suspicious transactions

Areas for Improvement

The report also highlights areas where Sao Tome and Principe needs to improve, including:

  • Regulation and supervision of financial institutions
  • DNFBPs (Designated Non-Financial Businesses and Professions)
  • Cash couriers
  • Transparency and beneficial ownership of legal persons and arrangements
  • Regulation and supervision of DNFBPs

Commitment to Reforms

The FIU has committed to implementing the necessary reforms to bring its AML/CFT regulations in line with international standards. The report is seen as a positive step towards strengthening the country’s financial system and preventing the misuse of cryptocurrencies for illicit activities.

Statement from the FIU Director

In a statement, the FIU director said that the agency will continue to work closely with international partners to ensure that Sao Tome and Principe meets its AML/CFT obligations and maintains a robust regulatory framework.