Financial Crime World

Cape Verde Cracks Down on Financial Crime: Banks Targeted in Response to Luanda Leaks Revelations

Government Takes Action Against Money Laundering and Corruption

In a move aimed at combating financial crime and money laundering, Cape Verde’s government has announced plans to close banks that serve only foreign customers. This decision follows the recent revelations from the Luanda Leaks investigation, which exposed widespread corruption and illicit financial dealings involving Angolan billionaire Isabel dos Santos.

Banks Affected by New Law

Four banks will be affected by the new law, including:

  • Banco Bic Cabo Verde: In which dos Santos holds a 42.5% stake
  • Offshore banks will have one year to start servicing local residents or face closure

Luanda Leaks Investigation Exposes Illicit Financial Dealings

The Luanda Leaks investigation, led by the International Consortium of Investigative Journalists (ICIJ), revealed how dos Santos amassed her fortune through:

  • Shell companies
  • Insider deals
  • Relationships with her father and Angolan president, Jose Eduardo dos Santos

Finance Minister Praises Investigation for Building Support for New Laws

Finance Minister Olavo Correia praised the Luanda Leaks investigation for helping to build support for the new laws, which were unanimously approved by Cape Verde’s parliament last month. “Luanda Leaks made the measure more understandable, broadened the consensus in society and facilitated the approval process unanimously and without any social noise,” he said.

Experts Warn of Need for Effective Implementation

While passing legislation is a significant step towards tackling financial crime in Cape Verde, experts warn that implementing it effectively will be crucial to preventing financial crime. “Cape Verde’s economic growth is based on its remote archipelago status, but this also makes it vulnerable to money laundering,” said Thierry Vircoulon, a researcher at the French Institute of International Relations (IFRI). “Passing legislation is one thing, implementing it is another.”