Financial Crime World

SAO TOME AND PRINCIPE’S FINANCIAL COMPLIANCE: A CLOSER LOOK

The Financial Action Task Force (FATF) has evaluated Sao Tome and Principe’s compliance with its recommendations, providing valuable insights into the country’s financial system. In this article, we will delve into the different types of financial compliance in Sao Tome and Principe.

Technical Compliance

Technical compliance refers to the extent to which a country has implemented the technical requirements of the FATF Recommendations. The ratings range from C (compliant) to NC (non-compliant).

Key Findings

  • R.1 - Assessing risk & applying risk-based approach: Largely compliant
  • R.2 - National cooperation and coordination: Largely compliant
  • R.3 - Money laundering offence: Largely compliant
  • R.4 - Confiscation and provisional measures: Partially compliant
  • R.5 - Terrorist financing offence: Partially compliant

Country-Specific Report

The FATF has published a country-specific report on Sao Tome and Principe, which provides an in-depth analysis of the country’s compliance with its recommendations.

Key Takeaways

  • The report highlights areas where the country needs to improve, such as implementing regulations for DNFBPs (designated non-financial businesses and professions) and strengthening its AML/CFT framework.
  • It also notes that Sao Tome and Principe has made significant progress in recent years, including establishing a financial intelligence unit and enhancing international cooperation.

Recommendations for Improvement

The FATF has identified several areas where Sao Tome and Principe needs to improve its compliance with the recommendations. These include:

  • Implementing regulations for DNFBPs
  • Strengthening its AML/CFT framework
  • Enhancing international cooperation

Conclusion

Sao Tome and Principe’s financial compliance is a complex issue, and the country has made significant progress in recent years. However, there are still areas where improvement is needed. By implementing regulations for DNFBPs and strengthening its AML/CFT framework, Sao Tome and Principe can improve its compliance with the FATF Recommendations and reduce the risk of money laundering and terrorist financing in the country.