Crypto ATM / kiosk operator in Cabo Verde

Banco de Cabo Verde (BCV) Stance:

The Banco de Cabo Verde (BCV), the central bank, has repeatedly issued public warnings regarding the risks associated with cryptocurrencies.

It has clarified that cryptocurrencies are not legal tender in Cabo Verde.

The BCV has stated it does not authorize, supervise, or license entities that deal exclusively with virtual assets, but it has actively issued public warnings and interventions (e.g., regarding OPTCOIN), indicating some regulatory oversight through public communications and evolving legal frameworks for digital currency.

Lack of Dedicated Licensing Regime:

There are no specific laws or regulations that define a licensing framework for crypto exchanges, custody providers, or payment processors as distinct categories of financial institutions.

Neither a specific licensing nor a dedicated registration regime for Virtual Asset Service Providers (VASPs) exists in Cabo Verde.

Entities wishing to operate a business (including a crypto-related one) would need to comply with general company registration laws in Cabo Verde, but this is distinct from obtaining a financial services license.

If a company were to deal with fiat currency in a way that constitutes a traditional financial service (e.g., remittances, payment processing of traditional money), then those specific activities would fall under the BCV's existing licensing requirements for financial institutions, which are separate from crypto activities.

Cabo Verde has updated its AML/CFT laws to align with FATF recommendations, which include virtual assets and VASPs.

The Financial Intelligence Unit (Unidade de Informação Financeira - UIF) is the national authority responsible for receiving, analyzing, and disseminating suspicious transaction reports.

Key Law: Lei n.º 1/IX/2021, de 16 de março, on the Prevention and Combat of Money Laundering and the Financing of Terrorism, explicitly defines "Ativo Virtual" (Virtual Asset) and "Prestador de Serviços de Ativos Virtuais" (Virtual Asset Service Provider) and subjects them to AML/CFT obligations.

Specific AML/CFT Requirements for VASPs (as "Reporting Entities"):

Customer Due Diligence (CDD/KYC): Implementing robust KYC procedures to identify and verify the identity of customers, including beneficial owners. This means collecting name, address, date of birth, national ID, etc.

Enhanced Due Diligence (EDD): For higher-risk customers or transactions.

Record-Keeping: Maintaining records of customer identification data and transaction details for a specified period (typically 5-7 years).

Suspicious Transaction Reporting (STR): Reporting any suspicious transactions or activities to the UIF without delay.

Risk Assessments: Conducting a thorough assessment of money laundering and terrorist financing risks associated with their business operations, customers, products, and services.

Internal Controls: Establishing and maintaining appropriate internal policies, procedures, and controls to mitigate ML/TF risks, including the appointment of an AML compliance officer and staff training.

Identification and Verification:

Individuals: Obtain and verify identity using reliable, independent source documents, data, or information (e.g., full name, date of birth, nationality, physical address, unique identification number like a passport or national ID).

Enhanced Due Diligence (EDD): Required for higher-risk customers or transactions, including:

Politically Exposed Persons (PEPs)

Customers from high-risk jurisdictions (as identified by FATF or local authorities)

Complex, unusually large transactions, or unusual patterns of transactions that have no apparent economic or lawful purpose.

Transactions involving new technologies or products that favor anonymity.

Reporting Obligation: Immediately report any transaction (or attempted transaction), regardless of the amount, that the VASP suspects to be related to money laundering, terrorist financing, or proliferation financing.

No Tipping-Off: Prohibit the disclosure to the customer or any third party that a suspicious transaction report is being or has been made, or that an AML/CFT investigation is being conducted.

Reporting Timeline: Reports must typically be made as soon as suspicion is formed, without delay.

Transaction Records: All necessary records regarding domestic and international transactions, sufficient to reconstruct individual transactions.

Customer Identification Data: Copies of all identification documents, account files, and business correspondence.

CDD Analysis: Documentation of all analyses undertaken regarding CDD, including the rationale for risk assessments.

Retention Period: Records must be retained for at least five (5) years after the business relationship ends or after the date of an occasional transaction. These records must be readily available to competent authorities upon request.

Unidade de Informação Financeira (UIF) – Financial Intelligence Unit:

Regulatory Stance and Warnings (General "Actions"):

A common approach from central banks in developing economies is to issue warnings via local press. For example, local news outlets often report on BCV warnings:

Issuing warnings to the public about the risks of unregulated virtual assets.

Developing a regulatory framework for virtual assets, which is a process that typically precedes widespread enforcement.

Any cases of fraud involving cryptocurrencies would likely be handled under general criminal law by the police and judicial system, rather than specific crypto-related enforcement by a financial regulator, especially if dedicated virtual asset laws are still nascent. These types of criminal cases are often not widely reported internationally with the specific details requested.