CAPE VERDE FAILS TO MEET FATF STANDARDS, REMAINS ON ENHANCED FOLLOW-UP PROCESS

Cabo Verde, a member of the Inter Governmental Action Group against Money Laundering in West Africa (GIABA), has made little progress in improving its compliance with international anti-money laundering and combating the financing of terrorism (AML/CFT) standards since its 2019 mutual evaluation.

Technical Compliance Deficiencies

According to the latest report, Cabo Verde’s level of technical compliance remains deficient in several areas. Specifically:

• Recommendation 7: The country has failed to address technical deficiencies and has been downgraded from a “largely compliant” rating to a “partially compliant” one.
• Recommendation 21: The implementation of this recommendation, previously rated as “compliant”, has also been downgraded to “largely compliant”.

Consequences of Non-Compliance

As a result, Cabo Verde will continue to be monitored closely through the Enhanced Follow-up process and is required to report regularly to the GIABA Plenary on its progress in strengthening its AML/CFT measures. The country’s failure to meet international standards raises concerns about its ability to:

• Prevent money laundering activities
• Detect terrorist financing activities

Next Steps

Cabo Verde will need to address these technical deficiencies and improve its compliance with international AML/CFT standards to avoid further negative consequences. The GIABA Plenary will continue to closely monitor the country’s progress and assess its ability to prevent and detect money laundering and terrorist financing activities.