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.

Cabo Verde has demonstrated a commitment to combating corruption by aligning with international standards, as evidenced by its improved ranking in Transparency International's Corruption Perceptions Index. The country has established a legal framework that criminalizes bribery and promotes transparency in public procurement, supported by institutions like the Corruption Prevention Council. Despite these efforts, Cabo Verde faces challenges with organized crime, including drug trafficking and human trafficking, while also working to enhance its governance and law enforcement capabilities.

Cabo Verde's economy is heavily reliant on tourism, which constitutes the largest segment of its economic activity, while the government actively seeks to diversify through initiatives in renewable energy and information technology. As of 2023, the country faces challenges such as a high public debt of 113 percent of GDP and vulnerability to external economic fluctuations, yet it has made significant strides by graduating from least developed country status in 2007 and achieving most Millennium Development Goals by 2015.

Cape Verde's investment climate is favorable, supported by a stable political environment and government policies that encourage foreign direct investment (FDI). The government offers incentives and tax breaks in key sectors such as renewable energy, tourism, and ICT, facilitated through a 'one-stop shop' service provided by Cabo Verde TradeInvest. Recent privatization efforts and a focus on sustainable development further enhance the country's attractiveness for investors.