Financial Crime World

Title: Cabo Verdean Laws Crack Down on Money Laundering and Terrorism Financing

Money Laundering in Cabo Verde

Money laundering is a global issue that poses a significant threat to economic stability and facilitates criminal activities. In Cabo Verde, this crime is addressed through comprehensive laws and regulations. According to the Cabo Verdean legal system, money laundering consists of the following stages:

  1. Placement: Crime proceeds are introduced into the financial and non-financial systems. This can be done through deposits with financial institutions, investments in assets such as real estate, or other means (Article 39 of Law No. 38/VII/2009).

  2. Circularization: Funds undergo multiple transactions to conceal their criminal origins. These transactions can include transfers between accounts, or other activities designed to obscure the source and ownership of the funds (Article 39 of Law No. 38/VII/2009).

  3. Integration: Laundered funds are reintegrated into legitimate economic circuits, often used to purchase goods and services (Article 39 of Law No. 38/VII/2009).

Combatting Terrorism Financing in Cabo Verde

Beyond money laundering, the Cabo Verdean legal system also seeks to combat terrorism financing. This aims to restrict the access of terrorists, terrorist organizations, and their supporters to the international financial system:

  • Freezing and Seizure of Assets: Assets belonging to terrorists or those who finance terrorism can be frozen and seized (Article 7 of Law No. 27/VIII/2013).
  • Reporting of Suspected Transactions: Financial institutions are obligated to report transactions suspected of having terrorist financing ties (Article 7 of Law No. 27/VIII/2013).
  • Prevention of Money Laundering: Increased duties to prevent money laundering in the context of fund transfers (Article 7 of Law No. 27/VIII/2013).
  • Criminalization of Terrorism Financing: Terrorism financing is criminalized under Cabo Verdean law (Article 7 of Law No. 27/VIII/2013).