Financial Crime World

Preventing Financial Crime in Cape Verde: A Guide to Combating Money Laundering and Terrorism Financing

Cape Verde has made significant strides in preventing financial crime by criminalizing money laundering and terrorism financing. However, there is still much work to be done to ensure the country’s economy and stability are not compromised.

The Threat of Money Laundering

Money laundering is a complex process that involves concealing the origin or true owner of illegal funds through three stages: placement, circulation, and integration. Criminals often use legitimate businesses such as financial institutions and real estate companies to launder their ill-gotten gains, making it challenging to trace the money back to its source.

How Money Laundering Works

  • Placement: Criminals introduce illegal funds into the financial system through legitimate means.
  • Circulation: The funds are circulated through various channels, often using shell companies or trusts.
  • Integration: The laundered funds are integrated into the economy, making it difficult to distinguish from legitimate income.

Combating Money Laundering in Cape Verde

To combat money laundering and terrorism financing, Cape Verde has implemented a range of measures, including:

Freezing Assets

  • Freezing assets belonging to terrorists and those who support them to prevent them from being used to fund illegal activities.

Reporting Suspicious Transactions

  • Requiring financial institutions to report suspicious transactions to the authorities to help detect and prevent money laundering.

Increased Scrutiny Over International Fund Transfers

  • Increasing scrutiny over international fund transfers to identify and prevent potential money laundering schemes.

Cape Verde’s legal system has criminalized money laundering and terrorism financing through:

Article 39 of Law No. 38/VII/2009

  • Making money laundering a crime punishable by law.

Article 7 of Law No. 27/VIII/2013

  • Considering terrorism financing an autonomous crime.

What More Needs to be Done

Despite these efforts, experts warn that more needs to be done to prevent financial crime in Cape Verde. To achieve this:

Vigilance from Financial Institutions

  • Financial institutions must remain vigilant and work together with government agencies to detect and report suspicious transactions.

Public Awareness

  • The public must be aware of the warning signs of money laundering and terrorism financing to help prevent these crimes.

Community Involvement

  • Preventing financial crime in Cape Verde requires a comprehensive approach that involves not only law enforcement and regulatory bodies but also the entire community. By working together, we can help keep our country safe from the threats posed by these crimes.