Financial Crime World

SAO Tomé and Principe Removed from FATF Blacklist

The Financial Action Task Force (FATF), the global standard-setting body for anti-money laundering and combating the financing of terrorism (AML/CFT), has removed São Tomé and Principe from its list of countries with strategic deficiencies in their AML/CFT standards.

Progress Made, but Challenges Remain

According to the FATF, while São Tomé and Principe has made progress in addressing its deficiencies, it still requires improvement. However, given the country’s small size and limited impact on the international financial system, the FATF decided that it should continue to work closely with the International Governmental Action Group against Money Laundering in West Africa (GIABA).

Country’s Efforts to Improve AML/CFT Standards

The country faces significant challenges in complying with international AML/CFT standards due to its limited resources. However, São Tomé and Principe has made significant efforts to improve its regulations and infrastructure.

  • In 2013, the country’s parliament adopted a fully amended and restated law on AML/CFT, which was published in the Official Gazette and came into force 15 days later.
  • The new legislation is designed to comply with international standards and includes provisions on money laundering and terrorism financing, as well as measures to prevent and detect suspicious transactions.

Key Provisions of the New Legislation

The law also establishes a central agency, the Financial Information Unit (UIF), responsible for: + Receiving, reporting, analyzing, and exchanging information about suspect transactions.

  • The country has designated its central bank as the supervisory authority for financial institutions, while regulatory bodies will supervise other sectors.

Positive Development, but Challenges Remain

The removal of São Tomé and Principe from the FATF’s blacklist is a positive development, demonstrating the country’s commitment to improving its AML/CFT regulations and infrastructure. However, it also highlights the challenges faced by small countries with limited resources in combating money laundering and terrorism financing.

Conclusion

São Tomé and Principe’s removal from the FATF’s blacklist is a significant step forward for the country, but there is still much work to be done to ensure compliance with international AML/CFT standards.