Financial Crime World

Here is the article in Markdown format:

Casinos and Real Estate Face Criticism Over Lack of Anti-Money Laundering Measures

A recent report by the Financial Action Task Force (FATF) has highlighted the lack of effective anti-money laundering (AML) measures in Cabo Verde’s casinos and real estate sectors. The report found that there is no risk-based supervision in place to ensure that these industries are not being used for money laundering or terrorist financing.

Lack of AML Measures

The sector supervisors have failed to issue guidelines or provide relevant information on AML/CTF-related issues, resulting in:

  • No AML/CTF-related sanctions applied in the DNFBP sector
  • No training provided to increase the level of knowledge and understanding of AML/CFT by the DNFBPs

Real Estate Sector Criticized for Lack of Transparency

The real estate sector in Cabo Verde has been criticized for its lack of transparency and weak regulatory framework. The report found that:

  • The sector is vulnerable to money laundering due to its cash-based transactions and lack of records
  • There are no clear regulations or oversight in place to ensure that real estate transactions are transparent and do not facilitate illegal activities

Recommendations:

  • Implement a robust regulatory framework for the real estate sector
  • Increase transparency and cooperation between financial institutions and law enforcement agencies
  • Enhance customer due diligence and ongoing monitoring

The casinos in Cabo Verde were found to be operating in a legal vacuum, with no clear regulations or oversight. The report found that:

  • There are no specific laws or regulations governing the operation of casinos in the country
  • This lack of regulation has led to concerns that the casinos may be being used for money laundering and other illicit activities

Recommendations:

  • Implement a robust regulatory framework for the casino sector, including licensing requirements, surveillance measures, and customer due diligence procedures

Conclusion

The FATF report highlights the need for Cabo Verde to strengthen its AML/CFT regime in order to combat money laundering and terrorist financing. The report’s findings are a wake-up call for the country’s casinos and real estate sectors, which must implement robust anti-money laundering measures to ensure their compliance with international standards.

Recommendations:

  • Take immediate action to address these concerns by implementing risk-based supervision, increasing transparency and cooperation between financial institutions and law enforcement agencies, and enhancing customer due diligence and ongoing monitoring.