YEAR 2022 No 1 Volume 27

ISSN 2182-9845

Mutual Evaluation Report: comparative analysis of Cape Verde and Senegal in relation to the role of the financial action group (FAFT) in leading measures to combat money laundering and terrorist financing

Sheila Soraya Dias Gomes Mendes

Keywords

Mutual Evaluation; Money laundering; Terrorist financing; FATF; GIABA; FSRBs.

Abstract

This article aimed to define the Financial Action Task Force (FATF) and its Style Regional Bodies (FSRBs) that combat money laundering and terrorist financing in the specific case of Cape Verde and Senegal with FATF`s recommendations with respect to the regulation and supervision. Therefore, a comparative analysis methodology with a descriptive-analytical approach was developed to compare two member countries of the Intergovernmental Action Group Against Money Laundering in West Africa (GIABA). In data collection, secondary data sources were used: theoretical literature on the subject and FATF report on Mutual Assessment Reports (RAM). This study analyzed variations in compliance with FATF standards between two GIABA member countries: Cape Verde and Senegal. It turned out that although Senegal has almost entirely extended these standards, Cape Verde only partially fulfilled them. These compliance variations are mainly attributed to the varying level of readiness in countries' commitment to legislative and regulatory requirements before the mutual evaluation process. This study makes a unique and vital contribution as it demonstrates the effectiveness of applying the FATF standards for these two GIABA member countries.