Regulatory Alerts2007-08-06
Regulation (NAP) - Transactions with Related Parties of Financial Institutions
The Central Bank of São Tomé and Príncipe mandates that all transactions with related parties be conducted under market conditions without preferential treatment, requiring authorized financial institutions to establish and annually review a written policy governing credit grants, deposits, and risk limits capped at 15% per party and 50% aggregate. The regulation defines related parties to include administrators, supervisory board members, controlling companies, spouses, relatives up to the third degree, and principal shareholders holding 10% or more of capital. Financial institutions must maintain updated related-party registers, submit quarterly operational reports to the Banking Supervision Directorate by the 20th of the following month, and face sanctions under NAP No. 3/2007 for non-compliance.