Financial Activities in Cabo Verde: Management of Other Assets and More
In a bid to boost financial stability and oversight, the Banco de Cabo Verde, the country’s central bank, has outlined a set of regulations governing various financial activities.
Authorization Required for Financial Institutions
To engage in financial activities in Cabo Verde, institutions must obtain authorization from Banco de Cabo Verde. This applies to activities such as:
- Interbank market trading
- Leasing of movable property
- Transactions involving precious stones and metals
- Consulting services
- More
A request for authorization must be submitted to the central bank, which will review and decide whether to grant or refuse permission.
Governing Bodies: Registration Requirements
Members of management bodies and supervisory boards of entities under Banco de Cabo Verde’s supervision are required to register with the central bank. This includes:
- Members who do not have executive duties
- Alternate members of supervisory bodies
- Managers of branches and representative offices
Qualifying Holdings: Notification Requirements
A qualifying holding is a direct or indirect stake in a financial institution representing more than 5% of share capital or voting rights, or allowing significant influence on management. Natural or legal persons who intend to acquire or increase such holdings must notify Banco de Cabo Verde in advance. The central bank has the power to oppose or not oppose the acquisition.
Banking System Indicators: Quarterly Publication
Banco de Cabo Verde publishes quarterly reports containing aggregated financial and prudential indicators of credit institutions with general authorization. This information provides insights into the Cabo Verdean banking system’s performance.
Microprudential Supervision Policy
The policy outlines guidelines for microprudential supervision, ensuring compliance with:
- Legal and regulatory frameworks
- Banco de Cabo Verde’s mission and values
- Good international practices
The framework sets out aspects to be respected during microprudential supervision processes or activities.
Further Information and Resources
For more information on these regulations, please refer to the following legislation:
- Lei das Atividades e das Instituições Financeiras (LAIF)
- Avisos nº 5/2014, de 17 de outubro - Sobre aquisição de participação qualificada em instituição financeira
- Avisos nº 1/2014, de 17 de outubro - Sobre regulação das operações de leasing
Contact Banco de Cabo Verde for further guidance on these regulations and to submit requests for authorization.