Financial Crime World

Title: Banco de Cabo Verde Takes the Lead in Cabo Verde’s Battle against Money Laundering and Terrorist Financing

Banco de Cabo Verde’s Role in National Initiatives

Banco de Cabo Verde has taken a prominent position in Cabo Verde’s efforts to enhance financial crime prevention measures. This is most evident in the country’s first National Money Laundering and Terrorist Financing Risk Assessment (ANR) exercise.

The Significance of the ANR

The ANR is crucial for:

  1. Adhering to Financial Action Task Force (FATF) Recommendation 1
  2. Identifying and understanding risks related to money laundering and terrorist financing
  3. Implementing proportionate measures to mitigate identified risks
  4. Allocating resources effectively in the fight against financial crimes

Optimizing Resource Allocation

Beyond mere compliance with international standards, the ANR process serves to:

  1. Provide the country and its authorities with valuable tools
  2. Efficiently utilize scarce resources
  3. Optimize preventive measures based on the nature of the risks

Collaboration and Working Groups

Facilitated by the World Bank, this collaboration involved various national public and private entities, including Banco de Cabo Verde who participated in two working groups:

  1. Banking, insurance, and securities markets
  2. Other financial institutions

Mutual Evaluation by GIABA

Cabo Verde underwent its second mutual evaluation as part of the West African Economic and Monetary Union’s Intergovernmental Action Group Against Money Laundering and Terrorist Financing (GIABA). This evaluation focused on:

  1. Technical compliance with FATF’s 40 Recommendations
  2. Their effective application based on the eleven Immediate Results

Previous Evaluation and Progress Reports

Cabo Verde’s anti-money laundering and terrorist financing system was previously evaluated by GIABA in 2007. Annual updates on reported information were provided via monitoring reports, which shifted to biannual reporting in 2015 due to the country’s progress.

Key Findings from 2007 Evaluation

Detailed findings from the previous evaluation can be found in the “Mutual Evaluation report on the fight against money laundering and terrorist financing.”