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Financial Crimes on the Rise in São Tomé and Principe
São Tomé, São Tomé and Principe - The small island nation of São Tomé and Principe is facing a growing problem of financial crimes, according to a recent report by the Financial Action Task Force (FATF).
Technical Compliance Rating
The country’s technical compliance rating has been assessed as “partially compliant” in several areas, including:
- Implementation of anti-money laundering measures
- Regulation of non-profit organizations
- Supervision of financial institutions
Weaknesses in Financial Regulatory Framework
The report highlights several weaknesses in São Tomé and Principe’s financial regulatory framework, including:
- Lack of transparency in beneficial ownership of legal persons and arrangements
- “Non-compliant” regulation of DNFBPs (designated non-financial businesses and professions)
- Inadequate reporting of suspicious transactions
Progress Made
While the country has made some progress in implementing anti-money laundering measures, including:
- Establishment of a financial intelligence unit
- Adoption of laws related to money laundering and terrorist financing
More needs to be done to address the growing problem of financial crimes in the country.
Government Response
The government of São Tomé and Principe has acknowledged the report’s findings and has pledged to take steps to strengthen its financial regulatory framework. The country is working to:
- Improve transparency
- Enhance cooperation with international partners
- Combat financial crimes and protect its economy
Central Bank Plans
In response to the report, the country’s central bank has announced plans to:
- Increase supervision of financial institutions
- Enhance customer due diligence requirements
National Risk Assessment
The government has committed to implementing a national risk assessment to identify areas of high-risk activity in the financial sector.
Conclusion
The FATF report is a wake-up call for São Tomé and Principe to take action to address its weaknesses in the fight against financial crimes. The country must work quickly to implement reforms and strengthen its financial regulatory framework to protect its economy and prevent further financial crimes.