Financial Crime World

Financial Crime and Corruption Plague Sao Tome and Principe Despite Reforms

Sao Tome and Principe, a small island nation off the coast of West Africa, has made significant strides in combating financial crime and corruption in recent years. However, despite these efforts, corruption remains a pervasive problem that continues to hinder economic development and stability.

Corruption Perception Index

According to Transparency International’s Corruption Perception Index, Sao Tome and Principe has shown improvement in its anti-corruption efforts, but still lags behind many of its regional peers. The government has taken steps to address the issue, including approving a new anti- corruption law in 2012 and implementing reforms aimed at increasing transparency and accountability.

Progress Made

One notable achievement is the modernization of customs procedures, which was facilitated by a Millennium Challenge Corporation Threshold Program. The program introduced modern software and eliminated manual processes, reducing corruption and increasing revenue for the government.

  • Implemented anti- money laundering/counter-terrorist financing law in 2013
  • Ratified major treaties aimed at combating financial crime, including:
    • United Nations Anticorruption Convention
    • OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions

Challenges Remain

Despite these efforts, corruption remains a significant problem in Sao Tome and Principe. The government lacks a designated agency responsible for combating corruption, and there is still a lack of transparency and accountability in many areas of public life.

  • Financial sector vulnerable to money laundering and other forms of financial crime
  • Limited resources and capacity make it difficult for authorities to effectively monitor and enforce anti- money laundering laws

Way Forward

In recent years, Sao Tome and Principe has made significant progress in combating financial crime and corruption, but more work needs to be done to address these persistent problems. The government must continue to implement reforms aimed at increasing transparency, accountability, and public trust, and international partners must provide support to help the country build its capacity to combat financial crime and corruption.