Regulatory Updates for Financial Institutions in Cape Verde

The Bank of Cape Verde has made significant updates to its regulations to ensure the stability of the financial sector.

Macroprudential Supervision: A Focus on Systemic Risk

The Bank of Cape Verde publishes an annual Financial Stability Report, which presents the main results of its macroprudential surveillance activities. The report highlights potential risks to the financial system and provides recommendations for mitigating these risks.

Supervised Institutions: Who’s Covered?

Under the supervision of the Bank of Cape Verde, several types of institutions are subject to regulations:

• Credit institutions such as:
  • Banks
  • Investment societies
  • Leasing finance companies
  • Factoring societies
  • Others
• Electronic money institutions
• Insurance companies and pension fund managers
• Collective investment organizations with a collective personality
• Fund management companies and securities depositories

Illegal Financial Activity: A Warning

The Bank of Cape Verde has emphasized the importance of verifying whether an institution is authorized to provide financial services before entering into any contractual relationship. Failure to do so can result in financial losses and even criminal charges.

Financial Crime: Terrorism Financing and Money Laundering

Cape Verde has also strengthened its laws against terrorism financing and money laundering, imposing stricter regulations on institutions and individuals involved in these activities.

Supervision: A Key Function of the Bank of Cape Verde

The Bank of Cape Verde is responsible for supervising and regulating financial institutions to ensure their stability and soundness. This includes:

• Monitoring their capital adequacy
• Liquidity
• Risk management practices

In conclusion, the Bank of Cape Verde has taken significant steps to strengthen its regulatory framework, ensuring the stability and integrity of the financial sector in Cape Verde.