Types of Financial Crimes in Cape Verde on the Rise, Experts Warn
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Cape Verde, a small island nation off the coast of West Africa, has been grappling with financial crimes for years. According to a recent report, the country’s lack of effective anti-money laundering (AML) and combating the financing of terrorism (CFT) measures has created an environment conducive to financial criminal activity.
Weaknesses in AML and CFT Measures
Despite taking some steps to establish an AML framework, Cape Verde has much work to do to strengthen its laws and regulations against money laundering. The country’s criminal code does not specifically criminalize money laundering, leaving loopholes for criminals to exploit. Furthermore, the report found that the government’s efforts to implement a comprehensive CFT regime are still in their infancy.
Consequences of Weak AML and CFT Measures
Financial experts warn that these weaknesses create an attractive environment for organized crime groups and terrorist organizations to launder money and fund illegal activities. “Cape Verde is a strategic location for criminal networks to move illicit funds,” said a financial analyst. “The lack of effective AML and CFT measures makes it easy for criminals to hide their tracks.”
Other Types of Financial Crimes
In addition to money laundering, other types of financial crimes are also prevalent in Cape Verde, including:
- Fraud
- Embezzlement
- Corruption
Calls for Greater International Cooperation
The report’s findings have sparked calls for greater international cooperation and assistance to help Cape Verde strengthen its financial regulations and combat financial crime. “We urge the international community to provide support to Cape Verde in its efforts to tackle financial crime,” said a representative from the Financial Action Task Force (FATF). “This is not only important for the country’s economic stability but also for global security.”
Government Response
In response to the report, the Cape Verdean government has pledged to take concrete steps to address the issues raised. “We are committed to strengthening our financial regulations and combating financial crime,” said a government spokesperson. “We will work closely with international partners to ensure that our laws and regulations are effective in preventing money laundering and terrorist financing.”