Financial Sanctions Enforcement Agencies in Sao Tome and Principe

The Financial Action Task Force (FATF) has recently assessed the compliance of Sao Tome and Principe with technical requirements to prevent money laundering and terrorist financing. The country has been rated as “largely compliant” overall, with high marks for implementing measures related to national cooperation, money laundering offenses, confiscation and provisional measures, targeted financial sanctions related to terrorism, and international cooperation.

Compliance and Non-Compliance

While Sao Tome and Principe scored well in many areas, it was found to be “non-compliant” in several others. Specifically:

• Transparency and Beneficial Ownership of Legal Persons and Arrangements: The country requires improvement in this area.
• Regulation and Supervision of Designated Non-Financial Businesses and Professions (DNFBPs): Sao Tome and Principe needs to strengthen its regulation and supervision of DNFBPs.
• Mutual Legal Assistance: Freezing and Confiscation: The country was found to be non-compliant in this area.

Areas for Improvement

The FATF’s assessment highlights the need for Sao Tome and Principe to improve its:

• Regulation and Supervision of DNFBPs
• Transparency and Beneficial Ownership Requirements

Additionally, the country was urged to strengthen its measures related to:

• Customer Due Diligence
• Record Keeping
• New Technologies

Conclusion

While Sao Tome and Principe has made significant progress in implementing financial sanctions enforcement measures, there is still work to be done to ensure that the country’s financial system is fully compliant with international standards. By addressing these areas for improvement, the country can further strengthen its efforts to prevent money laundering and terrorist financing.