Financial Crime World

Money Laundering Techniques in São Tomé and Príncipe Under Scrutiny

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The Financial Action Task Force (FATF) has released its latest report on São Tomé and Príncipe, highlighting several areas where the country falls short in combating money laundering techniques.

Partially Compliant Rating

São Tomé and Príncipe received a “partially compliant” rating for several recommendations, indicating that it has implemented some but not all of the required measures to combat money laundering.

Progress Made

According to the report, São Tomé and Príncipe has made significant progress in:

  • Assessing risk and applying a risk-based approach
  • Implementing national cooperation and coordination mechanisms
  • Implementing targeted financial sanctions related to terrorism and proliferation

Challenges Remain

However, the country still faces challenges in several areas, including:

  • Confiscation and provisional measures for money laundering offenses, terrorist financing offenses, and targeted financial sanctions related to terrorism and proliferation
  • Preventing the misuse of new technologies, such as digital currencies and online payment systems
  • Laws and regulations regarding non-profit organizations, customer due diligence, and record keeping

Positive Developments

On a positive note, the report commends São Tomé and Príncipe for:

  • Implementing targeted financial sanctions related to terrorism and proliferation
  • Relying on third-party providers and internal controls
  • Reporting suspicious transactions and tipping off authorities

Areas Requiring Further Attention

The report recommends that São Tomé and Príncipe strengthen its powers of supervisors, regulation and supervision of DNFBPs (designated non-financial businesses and professions), and financial intelligence units. Additionally, the country needs to:

  • Regulate and supervise financial institutions
  • Implement effective measures to prevent the misuse of new technologies
  • Improve laws and regulations regarding non-profit organizations, customer due diligence, and record keeping

Conclusion

While São Tomé and Príncipe has made significant progress in combating money laundering techniques, the country still faces challenges in several areas. It is essential for the government to address these issues to prevent the misuse of its financial system and maintain international cooperation and trust.