Cape Verde’s reputation depends on greater control of financial sector, IMF says

9 May 2007

Washington, United States, 9 May – Cape Verde should strengthen its regulation and supervision of the financial sector, particularly against money laundering and financing illicit activities, in order to maintain the country’s “good reputation,” the International Monetary Fund (IMF) recommended Tuesday.

The recommendation was made in the report of the second review of the Political Support Instrument (PSI), in which the IMF was optimistic about the development of the Cape Verdean economy, but made warnings.

“The development of the financial sector has to be carried out prudently and in line with best international practices,” said the sub-director of the IMF, Brazil’s Murilo Portugal, in the review.

“In order to safeguard Cape Verde’s good reputation, it is important for the authorities to move ahead with reforms that strengthen regulation and supervision of the financial sector,” he said.

The reforms, he continued, should “include the offshore sector” and make “provisions against money laundering and for combating the funding of terrorism.”

In terms of the budget, the archipelago is within the guidelines set as part of the PSI program, for a three-year period. (macauhub)