Financial Crime World

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Money Laundering Prevention Methods in São Tomé and Principe

The Financial Action Task Force (FATF) has rated São Tomé and Principe’s efforts to prevent money laundering and terrorist financing as “largely compliant” with international standards. The country has implemented various measures to combat financial crimes, including the establishment of a financial intelligence unit and the regulation of financial institutions.

Progress in Implementing Measures

In its latest follow-up report, the FATF praised São Tomé and Principe for its progress in implementing measures to prevent money laundering and terrorist financing. Specifically, the country has made significant strides in:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination

Laws and Regulations in Place

The report highlights that São Tomé and Principe has implemented laws and regulations to combat money laundering and terrorist financing, including:

  • Confiscation of assets related to these crimes
  • Protection of customer confidentiality and prevention of tipping off suspects

However, the country still needs to improve its efforts in certain areas, such as:

  • Targeting financial sanctions related to proliferation and non-profit organizations

Financial Institutions’ Responsibilities

São Tomé and Principe’s financial institutions are required to:

  • Maintain records
  • Report suspicious transactions
  • Prevent the misuse of correspondent banking relationships

Recommendations for Improvement

The FATF recommends that São Tomé and Principe continue to improve its efforts to combat money laundering and terrorist financing, particularly in areas such as:

  • Transparency and beneficial ownership of legal persons and arrangements
  • Enhancing cooperation with other countries and international organizations to share information and best practices

Conclusion

While São Tomé and Principe has made significant progress in implementing measures to prevent money laundering and terrorist financing, there is still room for improvement. The country’s efforts to combat financial crimes are crucial to maintaining a stable and secure financial system, and the FATF will continue to monitor its progress in this area.