Financial Crime World

Title: FATF Cracks Down on Money Laundering and Terrorism Financing in Sao Tomé and Principe

Subtitle: Overview of the country’s efforts to adhere to international financial standards set by the Financial Action Task Force (FATF)

Sao Tomé and Principe, a small island nation located in the Gulf of Guinea, is under the scrutiny of the Financial ActionTask Force (FATF) for its potential role as a hub for illicit activities and financial crimes. Here’s an overview of the country’s efforts to comply with the FATF’s international financial standards.

Background

  • Once a significant cocoa producer
  • Economically struggling
  • Strategic location on maritime shipping routes
  • Risk of being a hub for money laundering, terrorism financing, and other financial crimes

Joining the FATF and Progress Towards Compliance

  • Joined FATF as an observer member in 2009
  • CEMAC Financial Cooperation Commission (COFODEC) became its FATF-style regional body
  • Ratified the UN Convention Against Transnational Organized Crime and related Protocols in 2012, combatting money laundering and terrorism financing, among other transnational crimes

Key Institutional Developments

  • Creation of the National Committee for Prevention and Combating Money Laundering and Financing of Terrorism (CNLPCT)
  • Appointment of a Financial Intelligence Unit (FIU), responsible for monitoring financial transactions, intelligence gathering, and sharing information
  • Enactment of the Anti-Money Laundering Law, establishing a foundation for FATF recommendations

Ongoing Challenges

  • Limited resources
  • Weak institutional capacity
  • Lack of political will
  • Dependence on informal economic activities

Conclusion

Despite the challenges, Sao Tomé and Principe is committed to adhering to the FATF’s recommendations, strengthening its financial institutions and implementing necessary legislation. With continued support from organizations like FATF and CEMAC, this West African nation is making progress towards a more secure and compliant financial future.

  • Financial intelligence
  • Establishing beneficial ownership transparency
  • Enhancing international cooperation