Financial Crime World

Anti-Money Laundering Policies in Sao Tome and Principe Under Scrutiny

The Financial Action Task Force (FATF) has released its Follow-Up Report for 2023, detailing the technical compliance of Sao Tome and Principe with anti-money laundering (AML) policies. The report assesses the country’s adherence to the FATF Recommendations, which aim to prevent money laundering and terrorist financing.

Progress Made

According to the report, Sao Tome and Principe has made significant progress in implementing AML measures. In several areas, such as:

  • Assessing Risk and Applying a Risk-Based Approach (R.1): The country has been rated “largely compliant” (LC).
  • National Cooperation and Coordination (R.2): Sao Tome and Principe has also been rated “largely compliant” (LC).
  • Money Laundering Offence (R.3): The country has been rated “largely compliant” (LC).

Challenges Identified

However, Sao Tome and Principe faces challenges in other areas. Specifically:

  • Transparency and Beneficial Ownership of Legal Persons and Arrangements (R.24 and R.25): The country has been deemed “non-compliant” (NC).
  • Confiscation and Provisional Measures (R.4), Terrorist Financing Offence (R.5), and Financial Institution Secrecy Laws (R.9): Sao Tome and Principe has been rated “partially compliant” (PC).

Notable Progress

The report also highlights several areas where Sao Tome and Principe has made notable progress, including:

  • Financial Intelligence Units (R.29): The country has been rated “compliant” (C).
  • Powers of Supervisors (R.27) and Mutual Legal Assistance (R.37): Sao Tome and Principe has also been rated “compliant” (C).
  • Regulation and Supervision of Financial Institutions (R.26) and DNFBPs (R.28): The country has implemented measures to regulate and supervise financial institutions.

Conclusion

The FATF Follow-Up Report provides a comprehensive assessment of Sao Tome and Principe’s AML policies, identifying areas for improvement and highlighting best practices. The report will serve as a useful tool for the country’s authorities and stakeholders to strengthen its anti-money laundering framework and prevent financial crime.