Sao Tome and Principe Seeks to Boost Compliance with Financial Regulations

Introduction

In an effort to enhance financial transparency and compliance, Sao Tome and Principe has modernized its payment system by introducing payment platforms for VISA and MasterCard. This development aims to boost trade finance options and facilitate transactions between local businesses and international partners.

The New Payment Systems

The new payment systems offer a range of financial services, including:

Credit and debit card transactions
Online banking
Mobile payments

These services will provide customers with greater flexibility and convenience when conducting transactions. Prior to the introduction of these platforms, payment was typically made through irrevocable letters of credit.

Banking System in Sao Tome and Principe

The country’s banking system consists of:

One Central Bank (Banco Central de Sao Tome e Principe- BCSTP)
Four commercial banks, including two that also operate as investment banks

The BCSTP is responsible for: + Supervising the national financial system + Ensuring compliance with foreign-exchange controls + Managing the dobra (STD), the country’s national currency

Efforts to Boost Economic Growth

To boost economic growth, the government has been working closely with the BCSTP to ensure that greater inflows of foreign exchange translate into an increase in access to raw materials for businesses. Repatriation of capital is possible with prior authorization.

Recent Developments in the Banking Sector

In recent years, several commercial banks have been declared insolvent by the BCSTP, including:

Banco Equator (Angolan capitalized) in 2016
Banco Privado de Sao Tome (Cameroonian capitalized) in 2018
Energy Bank (Nigerian capitalized) in 2022

Conclusion

Despite these challenges, Sao Tome and Principe remains committed to enhancing financial transparency and compliance. The country’s banking system is expected to play a crucial role in driving economic growth and development in the coming years.