Financial Crime World

Title: Cape Verde’s Financial Regulatory Bodies: Banco de Cabo Verde’s Role in Macroprudential and Microprudential Supervision, Market Conduct, and Money Laundering Prevention

Banco de Cabo Verde: The Heart of Cape Verde’s Financial Sector

Banco de Cabo Verde, an integral part of Cape Verde’s financial sector, is responsible for oversight of the country’s financial system, prudential supervision, and market conduct.

Macroprudential Supervision: A Whole System Approach

  • Focuses on the national financial system as a whole
  • Publishes the Financial Stability Report annually
    • Presents analyses on the banking sector and its resilience
    • Outlines current and potential risks and regulatory responses

Microprudential Supervision: Institutional Soundness

  • Ensures individual financial institution and market soundness
  • Promotes sound management and regulates activities
  • Financial institutions must comply with competent management, internal control, and risk management practices

Market Conduct Supervision: Ethical Market Practices

Market Conduct Supervision Office of Banco de Cabo Verde:

  • Ensures ethical market practices in banking and insurance sectors
  • Protects consumers
  • Maintains market transparency

Money Laundering and Terrorism Financing Prevention

  • Prevents money laundering and terrorist financing
  • Implements measures such as asset freezing and increased duties for financial institutions
  • Classifies terrorism financing as an autonomous crime

Regulated Institutions: Finance and Supporting Institutions

Banco de Cabo Verde regulates various institutions, including:

  • Banks
  • Investment companies
  • Financial leasing companies
  • Factoring societies
  • Financing societies
  • Credit rating societies
  • Investment deposit agencies

These entities must register with the bank and commercial registry for authorization.

Penalties for Unauthorized Financial Activities

  • Illegal financial activities subject to penalties, including imprisonment
  • Consumers advised to ensure entities are authorized before engaging in financial business

Conclusion

Banco de Cabo Verde plays a dominant role in regulating Cape Verde’s financial sector through macroprudential, microprudential, market conduct, and money laundering prevention supervision. Understanding these roles is crucial for maintaining trust and security in the country’s financial landscape.