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's legal framework includes strict penalties for bribery and measures to ensure transparency in public procurement, while the establishment of the Corruption Prevention Council and involvement of various institutions highlight a comprehensive approach to tackling corruption. These efforts reflect Cabo Verde's dedication to aligning with international anti-corruption standards and enhancing its reputation in the global community.

Cape Verde's economy is characterized by a heavy reliance on tourism, which remains the largest sector, while the government actively seeks to diversify through investments in renewable energy and information technology. Despite a favorable investment climate and a commitment to economic freedom, the country faces challenges such as high public debt at 113 percent of GDP and vulnerability to external economic fluctuations. The government's strategic plans aim to enhance sustainable development and attract foreign direct investment, particularly in tourism and renewable energy sectors.

Cape Verde's investment climate is favorable, supported by a stable political environment and government policies that promote foreign direct investment (FDI). The government offers incentives through a 'one-stop shop' service, Cabo Verde TradeInvest, particularly in sectors like renewable energy, tourism, and ICT, while also emphasizing the importance of privatization to enhance efficiency and attract private sector investment.