Consequences of Financial Crime in Sao Tome and Principe: A Report

Sao Tome and Principe, a small island nation off the coast of West Africa, is grappling with the consequences of financial crime. Despite its efforts to combat organized crime, the country remains vulnerable to various forms of financial malfeasance.

Key Issues Facing Sao Tome and Principe

• Human Trafficking: While not a significant issue in Sao Tome and Principe, sex tourism has been linked to the sexual exploitation of children.
• Smuggling: The country’s geographical location makes it a potential destination for irregular migrants from neighboring countries, such as Nigeria.
• Illicit Firearms Trade: Although not a major concern, the Gulf of Guinea’s vulnerability to arms trafficking, drugs, and humans poses a threat to Sao Tome and Principe.

Environmental Degradation

Commercial agro-industrial activities are leading to unsustainable levels of deforestation in Sao Tome and Principe. While there are no reports of organized crime influence on environmental degradation, charcoal and timber products may be taxed by criminal actors at border crossings, indirectly contributing to financing for criminal organizations.

Turtle Poaching and Trafficking

The country is a habitat for several species at risk, including turtles. The possession, trade, and sale of turtle meat have been banned, but consumption continues, and isolated cases of illegal fishing have been reported in the country’s waters.

Judicial System and Law Enforcement

• The judiciary is mostly independent, upholding standards of due process in criminal matters.
• However, there have been cases of interference and undue influence over courts, as well as corruption within the judiciary.
• The police and security forces lack the equipment, capacity, and resources to respond to crime effectively, particularly in combating maritime crime.

Economy and Financial Activity

Sao Tome and Principe’s economy is growing, driven by tourism services and agriculture. However, the country faces high unemployment and poverty rates, making it an unattractive investment destination. There is little evidence of large-scale illicit financial activity, such as money laundering, but the Anti-Money Laundering and Countering the Financing of Terrorism protocol does not meet global standards.

Government Response

The government is working to address these deficiencies, but they continue to be a source of vulnerability for the country. Sao Tome and Principe is a member of the Inter-Governmental Action Group against Money Laundering in West Africa, a Financial Action Task Force-type regional body.

In conclusion, Sao Tome and Principe’s financial crime landscape is complex and multifaceted. While the country has made efforts to combat organized crime, it remains vulnerable to various forms of financial malfeasance. Addressing these issues will require sustained commitment from the government, civil society, and international partners.