Regulatory Alerts2015-04-13
Regulation (NAP) – Source of Funds Justification
The Central Bank of São Tomé and Príncipe mandates licensed financial institutions to verify and document the source of funds for client transactions equal to or exceeding STD 245,000,000.00 (two hundred and forty-five million dobras) or equivalent, as well as for any amount where doubts or suspicions regarding fund lawfulness arise. This Permanent Application Regulation establishes a standardized declaration model and subjects non-compliance to supervisory sanctions under existing penalty frameworks. The regulation, issued on 13 April 2015 and effective from 4 May 2015, operationalizes Chapter III of Law 08/2013 by embedding source-of-funds justification as a core anti-money laundering and counter-terrorist financing obligation.
| Central Bank of S. T. P. | N A P<br>PERMANENT APPLICATION REGULATION | CODE<br>SB 09 |
|---|---|---|
| PROPOSER(S) | EFFECTIVE DATE | ISSUANCE DATE |
| PSBS | 04/05/2015 | 13/04/2015 |
Subject: Source of Funds Justification
Considering that Chapter III of Law 08/2013, the Anti-Money Laundering and Counter-Terrorist Financing Law, establishes preventive measures to be observed by financial institutions in the prevention of money laundering,
Considering that the duty to examine financial transactions carried out by clients is one of the most important measures within this scope;
Having regard to the requirement for justification of the source of funds, which are subject to financial transactions, as a fundamental component of the examination duty;
In these terms, the Central Bank of São Tomé and Príncipe, using the powers conferred upon it by letters d) and f) of paragraph 2 of Article 8 of its Organic Law, Law No. 8/92, combined with paragraph 8 of Article 10 and letter g) of Article 25 of Law 08/2013, the Anti-Money Laundering and Counter-Terrorist Financing Law, determines the following:
Article 1. Source of Funds Justification
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All financial institutions licensed by the Central Bank are required to require their clients to justify the source of funds, when the transaction in question is equal to or greater than STD 245,000,000.00 (two hundred and forty-five million dobras) or equivalent.
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Financial institutions are also required to require justification of the source of funds, regardless of the amount, if they have doubts or suspect the lawfulness of the funds subject to financial transactions.
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The declaration justifying the source of funds must be documented and made according to the attached model.
Reviewed/Approved ____________________ Revocation Details:
| Central Bank of S. T. P. | N A P<br>PERMANENT APPLICATION REGULATION | CODE<br>SB 09 |
|---|---|---|
| PROPOSER(S) | EFFECTIVE DATE | ISSUANCE DATE |
| PSBS | 04/05/2015 | 13/04/2015 |
Article 2. Sanctioning Regime
Non-compliance with the provisions of this regulation is subject to sanctions under the Regulation on Supervisory Action and Application of Penalties.
Article 3. Entry into Force
This NAP enters into force in accordance with legal provisions.
Central Bank of São Tomé and Príncipe, in São Tomé, 13 April 2015.
Reviewed/Approved ____________________ Revocation Details:
| Central Bank of S. T. P. | N A P<br>PERMANENT APPLICATION REGULATION | CODE<br>SB 09 |
|---|---|---|
| PROPOSER(S) | EFFECTIVE DATE | ISSUANCE DATE |
| PSBS | 04/05/2015 | 13/04/2015 |
ANNEX I
SOURCE OF FUNDS JUSTIFICATION DECLARATION
Name of Ordering Party: ........................................................................... Name of Beneficiary: ........................................................................ Type of Transaction: ..............................................................................
Amount: ........................................... (STD)
........................................... (EURO)
........................................... (DOLLAR)
Source of Funds:
Reviewed/Approved ____________________ Revocation Details: