Financial Crime World

Financial Crime and its Impact on Society in São Tomé and Príncipe: A Concerning Reality

São Tomé and Príncipe, a small island nation off the coast of West Africa, has been grappling with financial crime for years. Despite being removed from the Financial Action Task Force (FATF) blacklist in 2013, the country still faces significant challenges in combating money laundering and terrorist financing.

A History of Challenges

The FATF, a global standard-setting body, had placed São Tomé and Príncipe on its blacklist in 2008 due to deficiencies in its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework. The country’s AML/CFT law was deemed insufficient, and it failed to make sufficient progress in addressing the identified deficiencies.

Progress and Improvements

However, with international support and assistance, São Tomé and Príncipe has made significant strides in improving its AML/CFT regime. In 2013, the International Governmental Action Group against Money Laundering in West Africa (GIABA) published a detailed report highlighting the country’s progress and recommending further improvements.

New Legislation

The São Tomé and Príncipe Parliament subsequently adopted a fully amended and restated law on anti-money laundering and combating the financing of terrorism, which came into force in October 2013. The new legislation is designed to comply with international standards and has introduced several key measures:

  • A clear definition of money laundering and terrorist financing crimes
  • Legal entities can be held criminally liable for these offenses
  • Sanctions, including asset confiscation, can be imposed on those found guilty
  • National and international cooperation mechanisms are in place

Challenges and Recommendations

The removal of São Tomé and Príncipe from the FATF blacklist is a positive development, indicating that the country’s efforts to improve its AML/CFT framework have been recognized. However, it is essential to acknowledge that countries like São Tomé and Príncipe often face significant challenges in combating financial crime due to limited resources.

  • The country’s vulnerability is exacerbated by the increasing regulatory demands imposed upon them without adequate technical and financial assistance.
  • It is crucial that international organizations and governments provide support and cooperation to help São Tomé and Príncipe effectively combat financial crime and protect its citizens from its devastating effects.

Conclusion

The fight against financial crime requires a concerted effort from all stakeholders, including governments, regulatory bodies, and international organizations. By working together, we can strengthen our defenses against financial crime and create a safer and more stable global financial system.