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 strong commitment to combating corruption by ratifying the UN Convention against Corruption and improving its ranking in Transparency International’s Corruption Perceptions Index, where it now ranks 30th out of 180 countries. The country has established a legal framework that criminalizes bribery and mandates public officials to disclose conflicts of interest, while the creation of the Corruption Prevention Council and the involvement of various institutions highlight a comprehensive approach to tackling corruption. These efforts reflect Cabo Verde's dedication to transparency and its positive standing in the international community.

Cape Verde's economy is heavily reliant on tourism, which constitutes the largest segment of its economic activity, while the government is actively working to diversify its economic base. As of 2023, the country faces challenges such as high public debt at 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 of its Millennium Development Goals by 2015.

Cape Verde's investment climate is favorable, characterized by government policies that promote foreign direct investment (FDI) and a stable political environment. The government offers a 'one-stop shop' service through Cabo Verde TradeInvest, providing assistance and incentives in key sectors such as renewable energy and tourism, while maintaining a commitment to transparent governance and equitable treatment of investors.