Custodial wallet / SaaS in Sao Tome and Principe

Custodial License Requirements:

There are no specific licensing requirements for cryptocurrency custodians in Sao Tome and Principe.

However, any entity engaging in financial services (broadly defined) or activities that could be interpreted as traditional financial intermediation might fall under existing general financial services laws and require a license from the Banco Central de São Tomé e Príncipe (BCSTP) or other relevant authorities. This would be a matter of interpretation, as these laws predate crypto.

Segregation of Client Assets Rules:

There are no specific insurance or bonding requirements for cryptocurrency custodians.

Cold Storage Mandates:

Qualified Custodian Definitions:

FATF Recommendation 15 specifically addresses new technologies and recommends that Virtual Asset Service Providers (VASPs), which would include custodians, be regulated for AML/CFT purposes, licensed or registered, and subject to effective systems for monitoring and supervision.

Therefore, any entity operating as a crypto custodian would likely be expected to implement robust AML/CFT controls (e.g., Know Your Customer - KYC, transaction monitoring, suspicious activity reporting), even if the specific custody aspects are unregulated.

Neither a dedicated Registration nor Licensing Regime for VASPs: As of the latest information, STP does not have a specific regime for registering or licensing virtual asset service providers.

Custody Providers (holding virtual assets):

If an exchange facilitates the exchange of virtual assets for fiat currency (e.g., STN - Sao Tome Dobra) or vice versa, and offers services akin to traditional banking or money remittance, it might be deemed to be conducting activities that require a banking license or a payment service provider license from the Banco Central de São Tomé e Príncipe (BCSTP).

Payment Processors (processing crypto payments or crypto-related fiat payments):

Local Presence: For any traditional financial license, a significant local presence is typically required, including:

A locally incorporated legal entity.

Physical office space.

Local management and staff, including a compliance officer.

Fit and proper assessment for directors and key personnel.

Lei n.º 10/2012, de 23 de Agosto (Law No. 10/2012, of August 23): This is the foundational law for the Prevention and Combat of Money Laundering and Terrorism Financing. It establishes the general framework for AML/CFT obligations for financial and non-financial institutions.

Lei n.º 7/2020, de 16 de Julho (Law No. 7/2020, of July 16): This law amended and republished Law No. 10/2012. Amendments typically reflect updated FATF recommendations and often broaden the scope of obliged entities or strengthen specific requirements (like beneficial ownership or risk-based approaches), which would implicitly apply to emerging sectors like virtual assets.

Identification and Verification of Customers:

Beneficial Ownership: Identifying and taking reasonable measures to verify the identity of the beneficial owner(s) of the customer, including natural persons who ultimately own or control the customer, or the natural person on whose behalf a transaction is being conducted.

Ongoing Monitoring: Conducting ongoing due diligence on the business relationship and scrutiny of transactions undertaken throughout the course of that relationship to ensure that the transactions are consistent with the obliged entity’s knowledge of the customer, their business, and risk profile, including, where necessary, the source of funds.

Enhanced Due Diligence (EDD): Applying enhanced measures for higher-risk customers, relationships, or transactions, such as:

Report Suspicious Transactions: Report to the Financial Intelligence Unit (UIF) any transaction, attempted transaction, or activity that they know, suspect, or have reasonable grounds to suspect involves funds derived from criminal activity or is related to terrorism financing, regardless of the amount.

Timeliness: Reports must be made promptly.

No Tipping-Off: Obliged entities, their directors, officers, and employees are prohibited from disclosing to the customer or to third parties that an STR is being or has been submitted.

Customer Identification Data: All records obtained through CDD procedures (e.g., copies of identification documents, verification data).

Transaction Records: Details of all domestic and international transactions, including the amount, currency, date, and parties involved (originator and beneficiary information).

Unidade de Informação Financeira (UIF) – Financial Intelligence Unit:

Banco Central de São Tomé e Príncipe (BCSTP) – Central Bank of São Tomé and Príncipe:

Small Financial Market: Sao Tome and Principe has a very small economy and financial sector. The adoption and prevalence of complex cryptocurrency operations that would warrant significant enforcement actions (like those seen in major financial hubs) are extremely limited.

Developing Regulatory Framework: Many smaller nations are still in the early stages of developing specific regulations for cryptocurrencies. Their primary focus tends to be on general financial stability, anti-money laundering (AML), and countering the financing of terrorism (CFT) within traditional banking.

Regulator: Banco Central de São Tomé e Príncipe (BCSTP)

Outcome: Public awareness, discouragement of crypto use, maintaining financial stability.