Financial Crimes Definition Takes Center Stage in Cape Verde: A Look at Money Laundering and Terrorism Financing

Introduction

In an effort to combat financial crimes, the Cape Verdean government has taken decisive steps to define and criminalize money laundering and terrorism financing. This article will explore the definition of these crimes and the measures implemented by the government to prevent them.

The Definition of Money Laundering

According to Article 39 of Law No. 38/VII/2009, as amended by Law No. 120/VIII/2016, money laundering is the process of transforming illegal funds into legally reusable capital by concealing their origin or true owner.

Stages of Money Laundering

The government has identified three key stages in this criminal activity:

• Placement: The initial deposit or investment of criminal proceeds
• Circulation: Multiple transactions aimed at distancing the funds from their illicit origin
• Integration: When the laundered money is reintroduced into legitimate economic circuits

Measures to Prevent Terrorism Financing

In conjunction with its efforts to combat money laundering, Cape Verde has also implemented measures to prevent terrorism financing. These include:

• Freezing and seizing assets linked to terrorist organizations or individuals
• Reporting suspicious transactions
• Increasing diligence in preventing money laundering

The Criminalization of Terrorism Financing

The criminalization of terrorism financing is outlined in Article 7 of Law No. 27/VIII/2013, republished by Law No. 119/VIII/2016.

Conclusion

These developments mark an important step forward in Cape Verde’s efforts to combat financial crimes and protect its economy from illegal activities. As the country continues to evolve and strengthen its legal framework, it is clear that a concerted effort will be required to effectively prevent and punish these serious offenses.