Financial Crime World

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SAO TOME AND PRINCIPE: Banking Regulations for Anti-Money Laundering Come Under Scrutiny

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A recent assessment has evaluated Sao Tome and Principe’s banking regulations for anti-money laundering (AML) and found them to be largely compliant with international standards. The report, which assessed the country’s implementation of the Financial Action Task Force (FATF) Recommendations, highlighted several areas where improvement is needed.

Progress Made

According to the report, Sao Tome and Principe has made significant progress in implementing AML regulations, with ratings reflecting a high level of compliance. The following areas were found to be largely compliant:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Targeted financial sanctions related to terrorism and terrorist financing
  • Financial institution secrecy laws
  • Customer due diligence practices

Areas for Improvement

However, the report highlighted several areas where improvement is needed:

  • Confiscation and provisional measures (rated partially compliant)
  • Terrorist financing offence provisions (rated partially compliant)
  • Regulation and supervision of financial institutions
  • DNFBPs (Designated Non-Financial Businesses and Professions) and powers of supervisors
  • Transparency and beneficial ownership of legal persons and arrangements

Non-Compliance Issues

Sao Tome and Principe was also found to be non-compliant in the following areas:

  • Regulation and supervision of DNFBPs
  • Statistics on AML (deemed insufficient)

Conclusion

While there are areas for improvement, Sao Tome and Principe has made significant progress in implementing AML regulations and remains committed to combating money laundering and terrorist financing. The assessment is a critical step in the fight against financial crime, ensuring that banking regulations are robust and effective.

The government of Sao Tome and Principe has been urged to address the identified shortcomings and strengthen its AML regime to prevent the misuse of its financial system.