Financial Crime World

Organized Crime in São Tomé and Príncipe: A Threat to the Island Nation

Introduction

São Tomé and Príncipe, a small island nation in West Africa, is facing significant challenges related to organized crime. This report provides an overview of the main points, highlighting the threats, criminal actors, economic and financial environment, and civil society and social protection aspects.

Threats

  • Corruption: Widespread perceptions of corruption among government officials are a significant problem in São Tomé and Príncipe. This can exacerbate organized crime and undermine trust in institutions.
  • Financial Crimes: Financial crimes such as tax evasion and avoidance are prevalent, costing the country around $120,000 per year. The lack of adequate means and specialized personnel to investigate these crimes contributes to this issue.

Criminal Actors

  • Corruption in State and Judiciary: Corruption within the state and judiciary can create an environment that facilitates organized crime.
  • Pirate Groups: Pirate groups based in the Niger Delta pose a risk to vessels serving São Tomé and Príncipe, highlighting the need for increased security measures.
  • Money Laundering: While money laundering is not a significant problem, the country’s Anti-Money Laundering and Countering the Financing of Terrorism protocol does not meet global standards.

Economic and Financial Environment

  • Fragile Economy: São Tomé and Príncipe has a fragile economy that is highly vulnerable to external shocks.
  • Inflation: Inflation is linked to the war in Ukraine, increasing fuel prices, and bad weather caused by climate change.
  • Unemployment and Low Wages: High unemployment rates and low wages contribute to economic instability.

Civil Society and Social Protection

  • Lack of Assistance Programs: There are no established assistance programs for victims of organized crime.
  • NGO Operations: NGOs operate freely but have limited funding and capacity to address issues such as child labor.
  • Media Sector: The media sector is small, influenced by governments, and has a degree of self-censorship.

Conclusion

Overall, São Tomé and Príncipe faces significant challenges in addressing organized crime. To effectively combat these threats, the country needs to address corruption, strengthen its financial crimes investigation capabilities, and improve its economic stability. Additionally, civil society and social protection programs need to be established to support victims of organized crime.