Financial Crime World

Compliance Procedures for Banks in São Tomé and Principe

São Tomé and Principe, a small island nation off the coast of West Africa, has made significant strides in implementing anti-money laundering (AML) and combating the financing of terrorism (CFT) measures. In this article, we’ll explore the country’s compliance procedures for banks and its progress in implementing the Financial Action Task Force (FATF) Recommendations.

Recent Ratings and Compliance Status

According to recent ratings, São Tomé and Principe has largely complied with the FATF Recommendations. The country was found to be “largely compliant” in several key areas, including:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Money laundering offense
  • Confiscation and provisional measures
  • Targeted financial sanctions related to terrorism and terrorist financing

However, the country has also been identified as being “partially compliant” in some areas, such as:

  • Confiscation of proceeds of crime
  • Terrorist financing offense
  • Certain aspects of customer due diligence

Additionally, São Tomé and Principe was found to be “non-compliant” in a few key areas, including:

  • Regulation and supervision of non-profit organizations
  • Financial institution secrecy laws
  • Transparency and beneficial ownership of legal persons and arrangements

Progress in Implementing Measures

The country has made progress in implementing measures to prevent money laundering and terrorist financing through new technologies, wire transfers, and internal controls. However, it still faces challenges in certain areas, such as:

  • Relying on third parties
  • Reporting suspicious transactions
  • Regulation and supervision of financial institutions

Efforts to Combat Money Laundering and Terrorist Financing

São Tomé and Principe’s efforts to combat money laundering and terrorist financing have been recognized by international authorities. The country has been praised for its cooperation with foreign jurisdictions and its commitment to implementing effective AML/CFT measures.

The government has also taken steps to:

  • Improve transparency and beneficial ownership disclosure
  • Enhance the powers of supervisors and law enforcement agencies

Challenges and Future Progress

Despite these efforts, São Tomé and Principe still faces challenges in fully implementing all aspects of the FATF Recommendations. However, with continued cooperation and commitment from both the government and financial institutions, the country is likely to make further progress in combating money laundering and terrorist financing.

Conclusion

São Tomé and Principe’s compliance procedures for banks have made significant strides in recent years. While there are still areas for improvement, the country has demonstrated its commitment to implementing effective AML/CFT measures. With continued efforts and cooperation, São Tomé and Principe is likely to continue making progress in this important area.