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 2025. According to that Evaluation, Cabo Verde was deemed Compliant for 7 and Largely Compliant for 16 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Cabo Verde demonstrates a commitment to combating corruption and enhancing transparency, as evidenced by its alignment with international anti-corruption standards and the establishment of various oversight bodies. However, the country faces challenges related to organized crime, particularly as a transit hub for drug trafficking and human trafficking, which exploit its geographic position and relatively open borders, highlighting the need for continued improvements in governance and law enforcement.

Cape Verde, an archipelago located off the coast of Senegal, has made significant strides in its economic development, transitioning from a lower-middle-income to an upper-middle-income status as recognized by the World Bank. The country's economy is primarily driven by the tourism sector, which, despite its vulnerability to external shocks such as the COVID-19 pandemic, has shown resilience through a post-pandemic recovery characterized by increased tourist arrivals and macro-financial stability. The government has implemented various structural reforms to enhance the investment climate, including the establishment of a "one-stop shop" for investors and incentives in sectors like renewable energy, tourism, and information technology, while also focusing on diversifying the economy to mitigate risks associated with its heavy reliance on tourism.