Sao Tome and Principe -- Travel Rule Implementation Regulatory Overview

Based on available public information, it appears that Sao Tome and Principe has not yet explicitly adopted or fully implemented the FATF Travel Rule for Virtual Asset Service Providers (VASPs).

While Sao Tome and Principe is a member of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), a FATF-style regional body, its AML/CFT framework is still developing, particularly regarding virtual assets.

Here's a breakdown based on the current situation:

1. Whether Adopted:

   • No specific legislation or regulatory guidance explicitly implementing the FATF Travel Rule for VASPs has been publicly identified.
   • Sao Tome and Principe's primary anti-money laundering and combating the financing of terrorism (AML/CFT) law is likely Lei n.º 1/2012, de 27 de Junho (Law No. 1/2012, of June 27). This law predates the FATF's updated Recommendation 15 and 16 (which introduced the Travel Rule for VASPs in June 2019) and therefore does not include specific provisions for virtual assets or the Travel Rule.
   • The Banco Central de São Tomé e Príncipe (BCSTP), the central bank and financial regulator, has issued warnings regarding cryptocurrencies. For example, Comunicado n.º 001/2022 (April 2022) clarified that cryptocurrencies are not legal tender in Sao Tome and Principe and warned about the risks associated with their use. This indicates awareness of virtual assets but does not constitute a regulatory framework for VASPs or the Travel Rule.

2. Effective Date:

   • Not applicable, as the Travel Rule has not been explicitly adopted or implemented.

3. Threshold Amounts:

   • Not applicable, as the Travel Rule has not been explicitly adopted or implemented. If it were, the FATF standard threshold is USD/EUR 1,000 for transfers between VASPs (inter-VASP) and often no threshold for VASP-to-customer or customer-to-VASP transfers where the VASP is involved.

4. Which VASPs are Covered:

   • Not applicable, as there is no specific regulatory framework for VASPs currently in place that would define their scope or obligations under the Travel Rule. The term "VASP" itself is likely not formally defined in national law yet.

5. Technical Implementation Requirements:

   • Not applicable, as there are no specific technical implementation requirements for the Travel Rule in Sao Tome and Principe.

6. Penalties for Non-Compliance:

   • Since the Travel Rule specifically for VASPs is not implemented, there are no direct penalties for non-compliance with it.
   • However, general AML/CFT laws (such as Lei n.º 1/2012) would apply to any regulated financial entity or individual involved in money laundering or terrorist financing activities, which could include the misuse of virtual assets. Penalties under this law would typically involve fines and imprisonment for individuals and legal entities.

Summary and Outlook:

Sao Tome and Principe, like many smaller nations, is likely in the early stages of assessing and potentially developing a regulatory framework for virtual assets. Its current focus appears to be on warning citizens about risks rather than establishing a comprehensive regulatory regime for VASPs.

For the Travel Rule to be implemented, Sao Tome and Principe would need to:

• Amend its existing AML/CFT law or enact new legislation to define virtual assets and VASPs.
• Designate a competent authority (likely the BCSTP) to supervise VASPs.
• Issue specific regulations or guidance detailing the Travel Rule obligations, thresholds, and technical requirements.

Until such steps are taken, the FATF Travel Rule remains largely unimplemented in Sao Tome and Principe.

References and Further Information:

• Lei n.º 1/2012, de 27 de Junho (AML/CFT Law): While difficult to find a direct, publicly accessible URL for the official text from a government source, this is the foundational AML/CFT law.
• Banco Central de São Tomé e Príncipe (BCSTP) - Comunicado n.º 001/2022:
  • You can typically find official communications on the BCSTP's website: https://www.bcstp.st/ (Navigate to "Publicações" or "Comunicados" to find the relevant document, though direct links to specific communiques can change).
  • A summary or reference to this communique can often be found in financial news or regulatory updates concerning STP.
• GIABA (Inter-Governmental Action Group against Money Laundering in West Africa): Sao Tome and Principe is a member of GIABA. Their reports on member states provide insights into AML/CFT compliance, though the most recent Mutual Evaluation Report for STP was from 2016, preceding the Travel Rule update.
  • GIABA website: https://www.giaba.org/

Please note that regulatory landscapes are dynamic. It is advisable to consult the latest official publications from the Banco Central de São Tomé e Príncipe or the Ministry of Finance for the most current information.