Risk Assessment for Financial Institutions in Cape Verde: A Crucial Step Towards Compliance and Effective Prevention of Money Laundering and Terrorist Financing
In a bid to strengthen its efforts against money laundering and terrorist financing, the Republic of Cape Verde has participated in a national risk assessment exercise, facilitated by Banco de Cabo Verde. The initiative aims to identify, assess, and understand the risks associated with these illicit activities, thereby enabling the country to adopt a proportionate and effective approach in preventing them.
National Risk Assessment (ANR) Exercise
The ANR exercise was conducted in partnership with the World Bank and brought together national public and private entities with a significant role in preventing money laundering and terrorist financing. As the supervisor of the financial system, Banco de Cabo Verde played a pivotal role in the exercise, participating in two working groups that analyzed the banking, insurance, and securities market sectors, as well as other financial institutions.
Significance of ANR Exercise
The ANR exercise is a critical step towards Cape Verde’s compliance with international standards to combat money laundering and terrorist financing. The country is also subject to regular mutual evaluations by the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), which assesses its technical compliance with the Financial Action Task Force (FATF) Recommendations and their effective application.
Progress and Achievements
Cape Verde’s efforts have been recognized, with the country having made significant progress since its first mutual evaluation in 2007. The country has implemented measures to prevent and repress money laundering and terrorist financing, including:
- Annual monitoring reports that highlight key developments
- Biannual updates since 2015
Expected Outcomes
The risk assessment exercise is expected to provide Cape Verde with a valuable tool for allocating resources effectively in the fight against money laundering and terrorist financing. By identifying areas of high risk, the country can target its efforts more efficiently, ensuring that scarce resources are used proportionally to mitigate these risks.
Commitment to Combating Money Laundering and Terrorist Financing
As a member of GIABA, Cape Verde remains committed to combating money laundering and terrorist financing, and this national risk assessment exercise is a crucial step towards achieving this goal. The success of this initiative will not only enhance the country’s international reputation but also protect its financial system from illicit activities.
Conclusion
In conclusion, the national risk assessment exercise in Cape Verde is a vital step towards strengthening the country’s efforts against money laundering and terrorist financing. By identifying areas of high risk and allocating resources effectively, Cape Verde can mitigate these risks and maintain its commitment to international standards.