Sao Tome & Prin. Country Summary

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in São Tomé and Príncipe was undertaken in 2024. According to that Evaluation, São Tomé and Príncipe was deemed Compliant for 5 and Largely Compliant for 11 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

São Tomé and Príncipe faces significant challenges with corruption and crime, despite government efforts to implement reforms and combat these issues. While the country has established anti-corruption legislation and shown some political will to address organized crime, corruption remains pervasive due to factors such as lack of accountability, cronyism, and insufficient resources for law enforcement and judicial processes.

São Tomé and Príncipe is actively enhancing its investment climate to attract foreign direct investment (FDI), focusing on transparency and anti-corruption measures, while heavily relying on foreign donors for public investment. The government, under newly elected Prime Minister Américo Ramos, aims to boost sustainable economic growth and improve essential services such as healthcare and education, while also fostering regional integration and social cohesion. Despite these efforts, challenges persist, including a fragile domestic market, inadequate infrastructure, and high costs of credit, which hinder foreign investors from fully capitalizing on the available opportunities in this small island nation.