Financial Crime World

Title: Cabo Verde Cracks Down on Financial Crimes: Money Laundering and Terrorism Financing Prevention Strategies

Money laundering and terrorism financing are major threats to the international financial system. In response, the African archipelago nation of Cabo Verde has enacted stringent measures to combat these illicit activities.

Money Laundering Prevention Strategies

Money laundering is the process of converting criminal proceeds into legally usable funds. It involves the following stages:

  1. Placement: funds are introduced into the financial system or disguised through investments.
  2. Circulation: funds undergo numerous, layered transactions to conceal criminal origin and ownership.
  3. Integration: laundered funds are reintroduced into legitimate financial circuits, appearing as clean capital.

In Cabo Verde, money laundering is considered a criminal offense, as outlined in Article 39 of Law No. 38/VII/2009. An amendment by Law No. 120/VIII/2016 further strengthened these measures.

Terrorism Financing Prevention Strategies

Besides money laundering prevention, Cabo Verde legislated against terrorism financing. The country’s regulatory framework includes:

  • Asset freezing and seizure of terrorists and supporters.
  • Mandatory reporting of suspicious transactions potentially linked to terrorism financing.
  • Enhanced due diligence in fund transfers.
  • Criminalization of terrorism financing itself.

In Cabo Verde, terrorism financing is considered a distinct criminal offense. This is addressed in Article 7 of Law No. 27/VIII/2013, which was republished in Law No. 119/VIII/2016.

These measures serve to limit the opportunities for terrorists, their supporters, and financiers to access the international financial system.

By implementing these financial crime prevention strategies, Cabo Verde bolsters its efforts to curb illicit activities and promote economic stability as a responsible member of the global community.