Regulatory Alerts2018-04-09
Regulation (NAP) - Assessment and Management of Money Laundering and Terrorist Financing Risk
The Central Bank of São Tomé and Príncipe issues this Permanent Applicable Norm (NAP) to mandate comprehensive assessment, management, and mitigation procedures for money laundering and terrorist financing (ML/TF) risks across all financial institutions. It requires institutions to classify clients into low, medium, and high risk categories based on operational, geographic, and transactional criteria, while obligating boards of directors to approve, annually review, and continuously evaluate tailored internal control frameworks. Additionally, the Central Bank exercises direct supervisory authority through periodic reporting, targeted inspections, special audits, and the power to enforce corrective measures when institutions fail to adhere to established ML/TF prevention standards.