Financial Crime World

Financial Fraud on the Rise in Sao Tome and Principe: Types of Schemes Revealed

Sao Tome and Principe, a small island nation off the coast of West Africa, has been facing a growing problem with financial fraud. According to experts, various types of schemes are prevalent in the country, and it is essential to understand these fraudulent activities to combat them effectively.

Types of Financial Fraud

The report identifies several categories of financial fraud that are common in Sao Tome and Principe:

Rating Compliance

  • Assesses a country’s implementation of technical requirements related to anti-money laundering (AML) and combating the financing of terrorism (CFT)
  • Sao Tome and Principe has made significant progress in this area, with ratings ranging from compliant (C) to non-compliant (NC)

Risk Assessment and Mitigation

  • Reflects a country’s ability to identify and mitigate risks associated with money laundering and terrorist financing
  • The report suggests that Sao Tome and Principe has made significant strides in this area, with a rating of largely compliant (LC)

Other types of financial fraud identified in the report include:

National Cooperation and Coordination

  • Assesses a country’s ability to coordinate efforts to combat money laundering and terrorist financing

Money Laundering Offence

  • Evaluates the effectiveness of laws and regulations related to money laundering

Confiscation and Provisional Measures

  • Examines a country’s ability to seize assets linked to money laundering and terrorist financing

Terrorist Financing Offence

  • Assesses a country’s ability to prevent the financing of terrorism

Targeted Financial Sanctions

  • Evaluates the effectiveness of targeted sanctions aimed at combating terrorism and terrorist financing
    • R.5: Terrorist financing offence
    • R.6: Targeted financial sanctions related to terrorism & terrorist financing

Areas for Improvement

The report also highlights several areas where Sao Tome and Principe needs to improve its efforts to combat financial fraud:

Targeted Financial Sanctions

  • R.7: Targeted financial sanctions related to proliferation
  • R.8: Non-profit organisations

Other areas that require improvement include:

Financial Institution Secrecy Laws

  • Assesses a country’s ability to ensure transparency in financial transactions

Customer Due Diligence

  • Evaluates the effectiveness of customer identification and verification procedures

Record Keeping

  • Examines a country’s record-keeping requirements for financial institutions
    • R.9: Financial institution secrecy laws
    • R.10: Customer due diligence
    • R.11: Record keeping

Additionally, the report identifies several areas where Sao Tome and Principe needs to improve its efforts to combat financial fraud:

Politically Exposed Persons

  • R.12: Politically exposed persons

Correspondent Banking

  • R.13: Correspondent banking

Money or Value Transfer Services

  • R.14: Money or value transfer services

New Technologies

  • R.15: New technologies

Conclusion

Overall, the report suggests that while Sao Tome and Principe has made significant progress in combating financial fraud, there is still much work to be done to address these complex issues. It is essential for the country to continue improving its efforts to combat financial fraud and protect its citizens from fraudulent activities.