Cabo Verde Financial Authority Issues Guidelines for Financial Activities
In a move to strengthen financial regulation in Cabo Verde, Banco de Cabo Verde has issued guidelines outlining the requirements for various financial activities. These guidelines aim to ensure that all financial institutions operating in the country comply with the law and maintain high standards of prudential supervision.
Guidelines for Financial Activities
The guidelines cover several key areas, including:
- Acting in interbank markets: Financial institutions seeking to engage in interbank transactions must submit a request to Banco de Cabo Verde.
- Leasing of movable property: Leasing companies must register with the banking authority and comply with specific regulations.
- Transactions involving precious stones and metals: Financial institutions involved in these transactions must maintain proper records and adhere to anti-money laundering regulations.
- Consulting services: Companies providing consulting services on capital structure, business strategy, and mergers and acquisitions must register with Banco de Cabo Verde.
- Acquisition of equity interests: Natural or legal persons seeking to acquire a qualifying holding in a financial institution must notify the banking authority in advance.
- Rental of safes and custody of securities: Financial institutions providing these services must comply with specific regulations.
Governing Bodies
Banco de Cabo Verde has also issued guidelines for governing bodies, including:
- Registration of management body members: Members of the management body and supervisory body of financial institutions must register with the banking authority to carry out their duties.
- Special registration for managers of branches and representative offices: Managers of these entities must also register with Banco de Cabo Verde.
Qualifying Holding
The guidelines require natural or legal persons intending to hold a qualifying holding in a financial institution to notify Banco de Cabo Verde in advance. The banking authority has the exclusive power to make a decision on opposition or non-opposition to the acquisition of a qualifying holding.
Banking System Indicators
Banco de Cabo Verde publishes quarterly reports on the compilation of main financial and prudential indicators for credit institutions with general authorization.
Microprudential Supervision Policy
The policy aims to establish guidelines for microprudental supervision, ensuring compliance with legal and regulatory frameworks and international best practices. The guidelines will outline the aspects that make up the framework and must be respected when carrying out microprudential supervision processes or activities.
By issuing these guidelines, Banco de Cabo Verde is demonstrating its commitment to maintaining a stable and transparent financial system in Cabo Verde. The guidelines will help ensure that all financial institutions operating in the country adhere to high standards of prudential supervision and maintain investor confidence.