|
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2012:
As a small archipelago nation off the west coast of Africa, Cape
Verde is not known as a regional financial center. Nevertheless,
given its location between Latin America and Africa, its significant
coastline, and a large shadow economy, Cape Verde remains
vulnerable to money laundering operations and terrorist financing.
At present, the vast majority of laundered proceeds come from
narcotics trafficking. Because of its location in the Atlantic Ocean,
along major trade routes, Cape Verde is an important transit
country for narcotics headed for Europe from South America via
Africa. Narcotics transit Cape Verde by commercial aircraft and
maritime vessels, including yachts.
There is no significant market for illicit or smuggled goods in Cape
Verde; most drugs/trafficking are destined for other markets. As a
result of drug trafficking, the formal financial sector may be
involved in money laundering, but there is no evidence that it
finances terrorism. Public corruption is very limited and does not
appear to contribute to money laundering/terrorist financing in
Cape Verde. In fact, in 2011 Cape Verde ranked 41st on
Transparency International’s Corruption Perception Index, second
among African nations.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
KNOW-YOUR-CUSTOMER (KYC) RULES:
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
KYC covered entities: Banks, money exchangers, accountants
and fiscal consultants, notaries, insurance companies, lawyers,
real estate or property brokers, dealers in precious metals and
stones, gaming centers, auto dealers and securities dealers
SUSPICIOUS TRANSACTION REPORTING (STR)
REQUIREMENTS:
Number of STRs received and time frame: 67 in 2011
Number of CTRs received and time frame: CTRs and STRs are
not differentiated.
STR covered entities: Banks, money exchangers, accountants
and fiscal consultants, notaries, insurance companies, lawyers,
real estate or property brokers, dealers in precious metals and
stones, gaming centers, auto dealers and securities dealers
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Five from January to September 2011
Convictions: None
RECORDS EXCHANGE MECHANISM:
With U.S.: MLAT: NO Other mechanism: YES
With other governments/jurisdictions: YES
Cape Verde is a member of the Inter Governmental Action Group
against Money Laundering in West Africa (GIABA), a Financial
Action Task Force (FATF)-style regional body. Its most recent
mutual evaluation can be found here: www.giaba.org
Enforcement and implementation issues and comments:
As of the end of 2011, proposed new legislation would seek to
restructure the current Financial Information Unit, the financial
intelligence unit (FIU), and adopt a judicial form. This should help
the FIU overcome some of its shortcomings and have a more
active role in the fight against money laundering. With the
approval of this legislation, the FIU would report directly to the
Ministry of Justice.
Government entities responsible for analyzing and investigating
money laundering and terrorist financing are understaffed and
their personnel lack the training and capacity to fully enforce the
law. Limited resources hamper the government’s ability to enforce
AML regulations, and local institutions are often unaware of their
reporting responsibilities.
Cape Verde should take steps to criminalize terrorist financing
and include suspected terrorist financing activity within its
reporting requirements. Cape Verde also should criminalize
tipping off and provide for the ability to freeze and seize assets
that are the proceeds or instruments of illegal activity.
____________________________________________________
US State Dept Narcotics Report 2013 (introduction):
Cape Verde is not a significant producer of illicit narcotics, but its
location in the Atlantic Ocean makes it an important transit hub for
cocaine and other drugs moving from Latin America to Europe.
The country’s ratio of sea borders to land area is among the
highest in the world, posing significant challenges to border
control and law enforcement efforts.
Cape Verde has two separate national law enforcement agencies
that fight narcotics trafficking, the Judicial Police (PJ) and the
National Police (PN). The PJ is primarily responsible for major
criminal investigations and the PN is responsible for public order.
The National Commission for Combating Drugsis responsible for
coordinating Cape Verde’s counternarcotics programs. In 2008,
Cape Verde adopted anti-money laundering legislation that
created a Financial Information Unit (FIU). In 2012, the
government passed additional legislation (Decree-Law No. 9) that
extended the FIU’s powers and transferred it from the Central
Bank to the Ministry of Justice. The FIU continues to lack
adequate human and financial resources to effectively implement
all of its functions. Cape Verdean authorities acknowledge the
country’s role as a transit state and proactively seek international
assistance to combat drug trafficking. During 2012, the PJ
detained and began criminal proceedings for two individuals, from
Angola and Guinea-Bissau, for drug possession and seized a
total of 2.226 metric tons of cocaine.
In 2012, the Government of Cape Verde cooperated with the
United States and other international partners to advance
common counternarcotics objectives. U.S. support included
partnering with the UN Office on Drugs and Crime to combat
financial crime and reduce local demand for drugs. The United
States also partnered with the Portuguese Judicial Police to send
23 PJ officers to Lisbon for counternarcotics training, and
provided communications, identification, and tactical equipment to
enable more effective drug investigations. In July 2012, the U.S.
Navy and Coast Guard conducted an African Maritime Law
Enforcement Partnership mission involving joint training,
surveillance, and law enforcement operations to suppress illicit
transnational maritime activity in and around Cape Verdean
waters. The operation bolstered the Cape Verde Maritime
Operation Center’s ability to coordinate national efforts and
bilateral operations with The Gambia. Finally, the United States
worked with authorities to improve use of its U.S.-provided
Communications Fusion Center to better interdict drug shipments.
For full report click here
____________________________________________________
US State Dept Trafficking in Persons Report 2012
(introduction):
(Tier 2)
Cape Verde is a source country for children subjected to forced
labor and, at times, sex trafficking within the country and a source
for persons trafficked to Brazil, Portugal, and other countries in
Europe for forced transport of drugs. Migrants from Guinea-
Bissau, Senegal, Nigeria, and Guinea may receive low wages and
work without contracts – creating vulnerabilities to forced labor in
Cape Verde’s construction sector. West African migrants may
transit the archipelago en route to situations of exploitation in
Europe. Cape Verdean children labor in domestic service, often
working long hours and at times experiencing physical and sexual
abuse – indicators of forced labor. Past reports indicate that boys
and girls – some of whom may be foreign – are exploited in
prostitution in Santa Maria, Praia, and Mindelo. Sex tourism – at
times involving prostituted children – is a growing problem in Cape
Verde. In 2010, an Italian national was convicted for the sexual
abuse of three minors in commercial sex in Santa Maria on the
island of Sal. Children are also used in the commission of crimes
within the country, including the forced transport of drugs. Street
children are vulnerable to street crime and, on rare occasions,
prostitution. Cape Verdean adults and children are tricked or
forced into transporting drugs to or within Brazil and Portugal. In
December 2011, a Swiss court sentenced a Cape Verdean
woman to 22 months’ imprisonment for recruiting 143 Brazilian
women for forced prostitution in Switzerland.
The Government of Cape Verde does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. During the year, the
government investigated 44 cases of child sexual abuse, some of
which may have included trafficking offenses. The Cape Verdean
Institute for Children and Adolescents (ICCA) made concerted
efforts to protect child victims of sexual abuse, including children
in prostitution, and to prevent and raise awareness of the worst
forms of child labor, including trafficking. Despite these efforts, the
government did not prosecute or convict trafficking offenders
during the year, including child sex trafficking crimes that occurred
within the country. Furthermore, it did not make efforts to identify
any trafficking victims in 2011, reduce the demand for commercial
sex acts, or address sex tourism involving children.
Read Full Report
____________________________________________________
US State Dept Terrorism Report 2009
Cape Verdean authorities continued to prosecute a case against
Jean-Charles Mendes Da Silva, a French citizen and alleged
member of the Algerian terrorist organization, the Armed Islamic
Group.[1] On March 10, 2007, Cape Verdean police arrested Da
Silva on an Interpol warrant and unrelated forgery and weapons
charges. A Cape Verdean court convicted him of those crimes, as
well as of certain criminal offenses related to his activities in
France, but prosecutors declined to seek a conviction under Cape
Verde's counterterrorism laws. Moreover, Cape Verde refused the
French government's request to extradite Da Silva, because he
had claimed and obtained Cape Verdean citizenship prior to his
arrest.[2] At year’s end Da Silva was awaiting sentencing.
With respect to counterterrorism legislation, Cape Verdean law
specifically criminalizes terrorist activity, including the provision of
material assistance to terrorists. The code of criminal procedure
gives police wide authority to perform wiretaps and warrantless
searches in cases of suspected terrorism. Additionally, in
November Cape Verde's two major political parties informally
agreed to amend the Cape Verdean constitution in order to allow
nighttime searches and seizures in such circumstances.
Cape Verdean law enforcement has taken special measures to
prevent terrorists from entering the country. Immigration
authorities check names of visitors against a database of actual
and suspected terrorists, which includes data furnished by the U.
S. government. Cape Verde was in the process of obtaining
access to certain data from the FBI's Integrated Automated
Fingerprint Identification System, and also participated in the
Economic Community Of West African States Warning and
Response Network, an information sharing program addressing
security issues.
Links:
Worldwide AML Legislation (International Bar Association)
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2012:
As a small archipelago nation off the west coast of Africa, Cape
Verde is not known as a regional financial center. Nevertheless,
given its location between Latin America and Africa, its significant
coastline, and a large shadow economy, Cape Verde remains
vulnerable to money laundering operations and terrorist financing.
At present, the vast majority of laundered proceeds come from
narcotics trafficking. Because of its location in the Atlantic Ocean,
along major trade routes, Cape Verde is an important transit
country for narcotics headed for Europe from South America via
Africa. Narcotics transit Cape Verde by commercial aircraft and
maritime vessels, including yachts.
There is no significant market for illicit or smuggled goods in Cape
Verde; most drugs/trafficking are destined for other markets. As a
result of drug trafficking, the formal financial sector may be
involved in money laundering, but there is no evidence that it
finances terrorism. Public corruption is very limited and does not
appear to contribute to money laundering/terrorist financing in
Cape Verde. In fact, in 2011 Cape Verde ranked 41st on
Transparency International’s Corruption Perception Index, second
among African nations.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
KNOW-YOUR-CUSTOMER (KYC) RULES:
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
KYC covered entities: Banks, money exchangers, accountants
and fiscal consultants, notaries, insurance companies, lawyers,
real estate or property brokers, dealers in precious metals and
stones, gaming centers, auto dealers and securities dealers
SUSPICIOUS TRANSACTION REPORTING (STR)
REQUIREMENTS:
Number of STRs received and time frame: 67 in 2011
Number of CTRs received and time frame: CTRs and STRs are
not differentiated.
STR covered entities: Banks, money exchangers, accountants
and fiscal consultants, notaries, insurance companies, lawyers,
real estate or property brokers, dealers in precious metals and
stones, gaming centers, auto dealers and securities dealers
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Five from January to September 2011
Convictions: None
RECORDS EXCHANGE MECHANISM:
With U.S.: MLAT: NO Other mechanism: YES
With other governments/jurisdictions: YES
Cape Verde is a member of the Inter Governmental Action Group
against Money Laundering in West Africa (GIABA), a Financial
Action Task Force (FATF)-style regional body. Its most recent
mutual evaluation can be found here: www.giaba.org
Enforcement and implementation issues and comments:
As of the end of 2011, proposed new legislation would seek to
restructure the current Financial Information Unit, the financial
intelligence unit (FIU), and adopt a judicial form. This should help
the FIU overcome some of its shortcomings and have a more
active role in the fight against money laundering. With the
approval of this legislation, the FIU would report directly to the
Ministry of Justice.
Government entities responsible for analyzing and investigating
money laundering and terrorist financing are understaffed and
their personnel lack the training and capacity to fully enforce the
law. Limited resources hamper the government’s ability to enforce
AML regulations, and local institutions are often unaware of their
reporting responsibilities.
Cape Verde should take steps to criminalize terrorist financing
and include suspected terrorist financing activity within its
reporting requirements. Cape Verde also should criminalize
tipping off and provide for the ability to freeze and seize assets
that are the proceeds or instruments of illegal activity.
____________________________________________________
US State Dept Narcotics Report 2013 (introduction):
Cape Verde is not a significant producer of illicit narcotics, but its
location in the Atlantic Ocean makes it an important transit hub for
cocaine and other drugs moving from Latin America to Europe.
The country’s ratio of sea borders to land area is among the
highest in the world, posing significant challenges to border
control and law enforcement efforts.
Cape Verde has two separate national law enforcement agencies
that fight narcotics trafficking, the Judicial Police (PJ) and the
National Police (PN). The PJ is primarily responsible for major
criminal investigations and the PN is responsible for public order.
The National Commission for Combating Drugsis responsible for
coordinating Cape Verde’s counternarcotics programs. In 2008,
Cape Verde adopted anti-money laundering legislation that
created a Financial Information Unit (FIU). In 2012, the
government passed additional legislation (Decree-Law No. 9) that
extended the FIU’s powers and transferred it from the Central
Bank to the Ministry of Justice. The FIU continues to lack
adequate human and financial resources to effectively implement
all of its functions. Cape Verdean authorities acknowledge the
country’s role as a transit state and proactively seek international
assistance to combat drug trafficking. During 2012, the PJ
detained and began criminal proceedings for two individuals, from
Angola and Guinea-Bissau, for drug possession and seized a
total of 2.226 metric tons of cocaine.
In 2012, the Government of Cape Verde cooperated with the
United States and other international partners to advance
common counternarcotics objectives. U.S. support included
partnering with the UN Office on Drugs and Crime to combat
financial crime and reduce local demand for drugs. The United
States also partnered with the Portuguese Judicial Police to send
23 PJ officers to Lisbon for counternarcotics training, and
provided communications, identification, and tactical equipment to
enable more effective drug investigations. In July 2012, the U.S.
Navy and Coast Guard conducted an African Maritime Law
Enforcement Partnership mission involving joint training,
surveillance, and law enforcement operations to suppress illicit
transnational maritime activity in and around Cape Verdean
waters. The operation bolstered the Cape Verde Maritime
Operation Center’s ability to coordinate national efforts and
bilateral operations with The Gambia. Finally, the United States
worked with authorities to improve use of its U.S.-provided
Communications Fusion Center to better interdict drug shipments.
For full report click here
____________________________________________________
US State Dept Trafficking in Persons Report 2012
(introduction):
(Tier 2)
Cape Verde is a source country for children subjected to forced
labor and, at times, sex trafficking within the country and a source
for persons trafficked to Brazil, Portugal, and other countries in
Europe for forced transport of drugs. Migrants from Guinea-
Bissau, Senegal, Nigeria, and Guinea may receive low wages and
work without contracts – creating vulnerabilities to forced labor in
Cape Verde’s construction sector. West African migrants may
transit the archipelago en route to situations of exploitation in
Europe. Cape Verdean children labor in domestic service, often
working long hours and at times experiencing physical and sexual
abuse – indicators of forced labor. Past reports indicate that boys
and girls – some of whom may be foreign – are exploited in
prostitution in Santa Maria, Praia, and Mindelo. Sex tourism – at
times involving prostituted children – is a growing problem in Cape
Verde. In 2010, an Italian national was convicted for the sexual
abuse of three minors in commercial sex in Santa Maria on the
island of Sal. Children are also used in the commission of crimes
within the country, including the forced transport of drugs. Street
children are vulnerable to street crime and, on rare occasions,
prostitution. Cape Verdean adults and children are tricked or
forced into transporting drugs to or within Brazil and Portugal. In
December 2011, a Swiss court sentenced a Cape Verdean
woman to 22 months’ imprisonment for recruiting 143 Brazilian
women for forced prostitution in Switzerland.
The Government of Cape Verde does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. During the year, the
government investigated 44 cases of child sexual abuse, some of
which may have included trafficking offenses. The Cape Verdean
Institute for Children and Adolescents (ICCA) made concerted
efforts to protect child victims of sexual abuse, including children
in prostitution, and to prevent and raise awareness of the worst
forms of child labor, including trafficking. Despite these efforts, the
government did not prosecute or convict trafficking offenders
during the year, including child sex trafficking crimes that occurred
within the country. Furthermore, it did not make efforts to identify
any trafficking victims in 2011, reduce the demand for commercial
sex acts, or address sex tourism involving children.
Read Full Report
____________________________________________________
US State Dept Terrorism Report 2009
Cape Verdean authorities continued to prosecute a case against
Jean-Charles Mendes Da Silva, a French citizen and alleged
member of the Algerian terrorist organization, the Armed Islamic
Group.[1] On March 10, 2007, Cape Verdean police arrested Da
Silva on an Interpol warrant and unrelated forgery and weapons
charges. A Cape Verdean court convicted him of those crimes, as
well as of certain criminal offenses related to his activities in
France, but prosecutors declined to seek a conviction under Cape
Verde's counterterrorism laws. Moreover, Cape Verde refused the
French government's request to extradite Da Silva, because he
had claimed and obtained Cape Verdean citizenship prior to his
arrest.[2] At year’s end Da Silva was awaiting sentencing.
With respect to counterterrorism legislation, Cape Verdean law
specifically criminalizes terrorist activity, including the provision of
material assistance to terrorists. The code of criminal procedure
gives police wide authority to perform wiretaps and warrantless
searches in cases of suspected terrorism. Additionally, in
November Cape Verde's two major political parties informally
agreed to amend the Cape Verdean constitution in order to allow
nighttime searches and seizures in such circumstances.
Cape Verdean law enforcement has taken special measures to
prevent terrorists from entering the country. Immigration
authorities check names of visitors against a database of actual
and suspected terrorists, which includes data furnished by the U.
S. government. Cape Verde was in the process of obtaining
access to certain data from the FBI's Integrated Automated
Fingerprint Identification System, and also participated in the
Economic Community Of West African States Warning and
Response Network, an information sharing program addressing
security issues.
Links:
Worldwide AML Legislation (International Bar Association)
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
 | Click here to link to all FATF Reports | |
| CAPE VERDE |
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| Last Updated: 10 March 2013 |