Financial Crime World

Cabo Verde Strengthens Financial Crime Prevention: Money Laundering and Terrorism Financing Laws

Amidst the global surge in financial crimes, the African archipelago nation of Cabo Verde is taking decisive action to prevent money laundering and terrorism financing.

Understanding Money Laundering

Money laundering is a process of making illegally-gained proceeds appear legitimate. The transformation of illicit earnings involves three critical stages:

  1. Placement: When offenders disguise their assets, often through deposits in financial institutions or investments in lucrative activities and high-priced properties.
  2. Circulation: Involves multiple and repeated transactions, intended to sever the criminal connections and ownership of the funds.
  3. Integration: Finally, laundered funds reenter the economy through legitimate channels such as purchasing goods and services.

Cabo Verde’s Stance on Money Laundering

Money laundering is a punishable offense in the Cabo Verdean justice system, as outlined in:

  • Article 39 of Law No. 38/VII/2009, dated April 27, with amendments from Law No. 120/VIII/2016, enacted March 24.

Tackling Terrorism Financing

In addition to money laundering prevention measures, Cabo Verdean lawmakers have addressed the issue of terrorism financing.

  1. Seizure and Forfeiture: Assets associated with terrorism financing can be seized and forfeited.
  2. Suspected Transactions: Reporting of suspected terrorism financing transactions is mandatory.
  3. Enhanced AML Procedures: Implemented for transferring funds to prevent terrorism financing.
  4. Criminalizing Terrorism Financing: This criminal activity is now a punishable offense under:
    • Article 7 of Law No. 27/VIII/2013
    • Republished under Law No. 119/VIII/2016, effective March 24.