Financial Crime World

Unraveling São Tomé and Príncipe’s Hidden Financial Crime History

São Tomé and Príncipe, an archipelago nation in the Gulf of Guinea, is known for its rich natural resources and historical importance as a trade hub in West Africa. However, this small island nation has also been a haven for financial crimes, according to the Organized Crime Index. In this article, we outline some infamous financial crime cases in São Tomé and Príncipe and discuss the underlying reasons for its vulnerability to such activities.

São Tomé and Príncipe: A Hub for Financial Crimes

The Organized Crime Index, a multidimensional tool by ENACT, sheds light on the level of criminality and resilience to organized crime in different countries. Recent data reveals São Tomé and Príncipe’s score in the financial crime dimension, highlighting some concerning cases.

Notorious Financial Crime Cases

  1. Operation Tropic Storm

    • A Portuguese businessman, António Carlos do Rosário da Silva, was arrested in Spain for his role in a large-scale international wire fraud.
    • Stolen funds were laundered through institutions in Portugal, Mexico, and São Tomé and Príncipe, amounting to over €30 million.

  2. Former Vice President’s Money Laundering Scheme

    • Evaristo Carvalho, a former Vice President of São Tomé and Príncipe, was implicated in a money laundering case worth $15 million.
    • He used false documents to obtain loans, which were later transferred to international accounts.

  3. FSF Former President’s Offshore Transactions

    • Osvaldo Júnior, the former president of the São Tomé and Príncipe Football Federation, was implicated in suspicious transactions involving millions of dollars to offshore companies.

São Tomé and Príncipe’s Weaknesses in Financial Regulation and Transparency

The seemingly lax financial regulation and transparency in São Tomé and Príncipe have made it an attractive destination for financial criminals. With a relatively small judicial system, these challenges pose a significant threat.

Moreover, the proceeds of these financial crimes have allegedly influenced local politics and fueled further illicit activities.

Addressing the Root Causes

Despite the challenges, São Tomé and Príncipe’s authorities are making strides towards strengthening the country’s financial regulatory framework:

  1. Financial Analysis Unit (FAU)

    • The FAU was established to monitor financial transactions identified as potentially suspicious.

  2. Regional Anti-Money Laundering Initiatives

    • São Tomé and Príncipe agreed to participate in regional anti-money laundering initiatives.

As the global community continues its efforts to combat financial crime, it is crucial to focus on:

  • Raising awareness
  • Bolstering investigative capabilities
  • Collaborating to address the root causes of this destructive phenomenon in São Tomé and Príncipe and beyond.