Cape Verde Country Summary

FATF Status

Cabo Verde is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Cabo Verde (Cape Verde) was undertaken in 2019. According to that Evaluation, Cabo Verde was deemed Compliant for 9 and Largely Compliant for 15 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Cape Verde is actively addressing corruption and organized crime, demonstrating a commitment to international anti-corruption standards and improving its ranking in global corruption indices. Despite these efforts, the country faces significant challenges, including its role as a transit hub for drug trafficking and human trafficking networks, which exploit its geographic position and relatively open borders, highlighting ongoing vulnerabilities in governance and law enforcement.

Cape Verde's economy and investment climate are characterized by a favorable environment for foreign direct investment (FDI), supported by government policies that promote transparency and equitable treatment for international investors. The government's "one-stop shop" service, Cabo Verde TradeInvest, facilitates investment processes and offers incentives in key sectors such as renewable energy, tourism, and information technology, while the political stability and commitment to economic freedom enhance the country's attractiveness as an investment destination. However, challenges remain, including a heavy reliance on tourism, public debt at 113% of GDP, and vulnerabilities to external economic fluctuations, necessitating ongoing efforts to diversify the economy and improve resilience against global economic pressures.