Financial Crime World

SAO TOME AND PRINCIPE FALLS SHORT ON CFT REGULATIONS, SAYS FATF

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In its latest assessment, the Financial Action Task Force (FATF) has given Sao Tome and Principe a mixed review on its compliance with anti-money laundering and combating the financing of terrorism (CFT) regulations.

Compliance Report Highlights

  • The country scored largely compliant in several areas, including:
    • Assessing risk and applying a risk-based approach
    • National cooperation and coordination
    • Money laundering offence
    • Confiscation and provisional measures
    • Targeted financial sanctions related to terrorism and terrorist financing
    • Correspondent banking
  • However, it was found partially compliant in others, such as:
    • Money or value transfer services
    • Customer due diligence
    • Record keeping

Areas for Improvement

  • The country scored non-compliant in several areas, including:
    • Regulation and supervision of DNFBPs (Designated Non-Financial Businesses and Professions)
    • Transparency and beneficial ownership of legal persons and arrangements
    • Financial intelligence units
  • Additionally, Sao Tome and Principe was found to be non-compliant with international instruments, mutual legal assistance, extradition, and other forms of international cooperation.
  • The report highlights several areas where the country needs improvement, including:
    • Lack of effective regulations and supervision of DNFBPs
    • Insufficient transparency in beneficial ownership of legal persons and arrangements
    • Inadequate financial intelligence units
    • Poor reporting of suspicious transactions and tipping-off and confidentiality measures

Strengths

  • Sao Tome and Principe received high marks for several areas, including:
    • Financial institution secrecy laws
    • Customer due diligence
    • Internal controls and foreign branches and subsidiaries

Conclusion

The report concludes that while Sao Tome and Principe has made progress in implementing the technical requirements of the FATF Recommendations, there is still much work to be done to ensure effective implementation and enforcement.