Financial Crime World

São Tomé and Principe: Banking Regulations and Laws Take Center Stage

Payment Methods in São Tomé and Principe

Payment methods in São Tomé and Principe typically involve irrevocable letters of credit, but the government has been working to modernize its payment system. In May 2021, the introduction of payment platforms for VISA and MasterCard marked a significant step forward.

  • For more information on payment options and trade finance, readers are encouraged to consult the Trade Finance Guide.

Banking System in São Tomé and Principe

The banking system in São Tomé and Principe is comprised of:

  • One Central Bank: Banco Central de São Tomé e Príncipe (BCSTP)
  • Four commercial banks, including two that also operate as investment banks:
    • BISTP
    • ECOBANK
    • Afriland First Bank
    • BGFI

History of Banking in São Tomé and Principe

In 1993, BISTP, a joint venture between the Government of STP and Portuguese bank Caixa Geral de Depositos and Angolan Bank, began operating as both a commercial and investment bank. The Gabonese Investment Bank (BGFI) started operations in STP in March 2012.

However, the BCSTP declared three commercial banks insolvent:

  • Banco Equator in 2016
  • Banco Privado de São Tomé in 2018
  • Energy Bank in 2022

Role of the Central Bank

The Central Bank of STP plays a crucial role in:

  • Supervising the national financial system
  • Selling hard currencies
  • Establishing indicative interest rates

Currency and Repatriation of Capital

The dobra (STD) is the country’s national currency, pegged to the Euro at an exchange rate of 1 Euro to 24.50 STD since January 2010.

Repatriation of capital is possible with prior authorization.

Key Facts About Banking in São Tomé and Principe

  • There are no US banks operating in STP.
  • Portuguese banks serve as the primary means for transferring funds.
  • It is essential to stay abreast of changes in banking regulations and laws in São Tomé and Principe. For more information on accessing ST&Ps ICS section on financing, readers are encouraged to visit the US Department of State Investment Climate Statement website.