Cabo Verde Regulates Financial Sector: Key Requirements for Businesses
Cabo Verde has taken significant steps to promote financial stability and transparency by implementing various regulations for businesses operating in the financial sector. These requirements are designed to ensure that financial institutions operate in a fair, transparent, and stable manner.
Authorization for Financial Activities
Companies seeking to engage in financial activities in Cabo Verde must submit an application to Banco de Cabo Verde, along with a request for authorization. The authority will then review the application and make a decision on whether to grant or deny authorization. This process ensures that only reputable companies are allowed to operate in the financial sector.
Governing Bodies Registration
To ensure accountability and transparency, members of management bodies and supervisory bodies of entities under Banco de Cabo Verde’s supervision must register with the authority. This includes:
- Managers of branches and representative offices
- Members of the board of directors or equivalent governing body
- Supervisory board members
Qualifying Holding Notification
Natural or legal persons who intend to hold a qualifying holding (direct or indirect) in a financial institution, representing more than 5% of share capital or voting rights, must notify Banco de Cabo Verde in advance. This includes:
- Changes in the scope of this holding
- Acquisition or disposal of shares or other securities
Banking System Indicators
Banco de Cabo Verde publishes quarterly reports on the compilation of main financial and prudential indicators of credit institutions with general authorization (commercial banks). These aggregated indicators provide an overview of the Cabo Verdean banking system’s:
- Balance sheets
- Income statements
- Financial stability
Microprudential Supervision Policy
The policy aims to establish guidelines for microprudential supervision, ensuring that:
- Processes are carried out in a consistent and effective manner
- Aligns with international best practices and recommendations
- Reflects the country’s legal and regulatory framework
- Supports Banco de Cabo Verde’s mission and values
By adhering to these requirements, businesses operating in the financial sector can contribute to maintaining stability and transparency in Cabo Verde’s economy.