Regulatory Requirements for Financial Institutions in Cape Verde
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Cape Verde’s banking system, supervised by the Central Bank of Cabo Verde (BCV), has been deemed efficient and well-managed. The onshore segment consists of eight banks, with branches and ATMs located throughout the inhabited islands.
Establishing a Bank Account
According to industry experts, establishing a bank account is relatively easy, requiring only proper identification and a taxpayer number from the Casa do Cidadão. Foreign investors can access credit under the same conditions as local investors, although some complain about limited commercial products for accessing credit.
Credit Instruments
The private sector has access to various credit instruments, including:
- Loans
- Letters of credit
- Lines of credit
Online payment and e-banking are becoming increasingly common, with Visa cards gaining popularity in the tourism sector.
Foreign Exchange Controls
Foreign investors have the right to transfer abroad freely convertible currencies, according to Article 9 of Cabo Verde’s External Investment Code. This allows for the repatriation of:
- Dividends
- Profits
- Capital
- Other earnings resulting from foreign investment operations
However, there are exceptions to this policy, including amounts related to unregistered foreign-investment operations or those containing false information.
Relationships with U.S. Banks and Local Correspondent Banks
Cabo Verde’s Central Bank has a working relationship with the New York Federal Reserve, which handles all U.S. dollar transactions bound for the country. Additionally, Cape Verde is eligible for EXIM Bank programs, providing access to financial resources for foreign investors.
Regulatory Framework
The legal guidelines for accounting systems in Cape Verde are clear and consistent with international norms. Foreign companies and investors are subject to the same laws, procedures, and protections as their local counterparts.
Overall, Cape Verde’s regulatory environment provides a stable and predictable framework for financial institutions and foreign investors alike.