Financial Crime World

Financial Crime Prevention in Sao Tome and Principe: A Critical Assessment

Sao Tome and Principe, an island nation off the coast of West Africa, has been grappling with various forms of financial crime. This report provides an assessment of the value, prevalence, and non-monetary impacts of specific crime types in the country.

Crime Types

Our research reveals that Sao Tome and Principe is vulnerable to several forms of financial crime, including:

Human Trafficking

  • Illicit activity involving coercion, deception, abduction or fraud for the purpose of exploitation, regardless of the victim’s consent.
  • Prevalent in Sao Tome and Principe due to its geographical location and economic conditions.

Migrant Smuggling

  • Activities by an organized crime group involving the illegal entry, transit or residence of migrants for a financial or material benefit.
  • A significant threat to national security and public order.

Arms Trade

  • The sale, acquisition, movement and diversion of arms, their parts and ammunition from legal to illegal commerce and/or across borders.
  • A major concern due to its potential to destabilize the region.

Non-Renewable Resource Crimes

Sao Tome and Principe is also susceptible to non-renewable resource crimes, including:

Illicit Extraction and Smuggling

  • The illicit extraction, smuggling, mingling, bunkering or mining of natural resources.
  • A significant threat to the country’s economy and environment.

Trade in Natural Resources

  • The illicit trade of natural resources, such as oil, gas, and minerals.
  • A major concern due to its potential to destabilize the region.

Synthetic Drug Trade

Our research indicates that Sao Tome and Principe is experiencing an emerging synthetic drug trade, with organized crime groups involved in:

Production

  • The production of synthetic drugs, such as MDMA and cocaine.
  • A growing threat due to its potential for addiction and social harm.

Distribution and Sale

  • The distribution and sale of synthetic drugs on the black market.
  • A significant concern due to its potential to destabilize the region.

Criminal Actors

The country’s financial crimes are perpetuated by various criminal actors, including:

Organized Crime Groups

  • Clearly defined groups with known names, defined leadership, territorial control, and identifiable membership.
  • A major threat due to their sophisticated networks and resources.

State-Embedded Actors

  • Criminal actors embedded in and acting from within the state’s apparatus.
  • A significant concern due to their access to sensitive information and resources.

Loose Networks of Associates

  • Loose networks of associates engaging in criminal activities who fail to meet the defining characteristics of mafia-style groups.
  • A growing threat due to their adaptability and resilience.

Capacity for Financial Crime Prevention

Sao Tome and Principe has limited capacity for financial crime prevention, with:

Inadequate Measures

  • Inadequate measures to combat money laundering and other related threats to the integrity of its financial system.
  • A significant concern due to its potential to destabilize the country’s economy.

Lack of Effective Regulatory Frameworks

  • The lack of effective regulatory frameworks to control and manage the economy.
  • A major concern due to its potential to create an environment conducive to crime.

Recommendations

To address these challenges, we recommend that Sao Tome and Principe:

Develop a Comprehensive Strategy

  • Develop a comprehensive strategy to prevent financial crimes.
  • A crucial step in addressing the country’s financial crime problems.

Enhance Capacity for Financial Crime Prevention

  • Enhance its capacity for financial crime prevention.
  • A necessary step in combating cross-border financial crimes.

Strengthen Regulatory Frameworks

  • Strengthen its regulatory framework to control and manage the economy.
  • A vital step in creating a safe and stable environment.

Increase International Cooperation

  • Increase international cooperation to combat cross-border financial crimes.
  • A crucial step in addressing regional security concerns.