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Regulatory Bodies for Financial Crimes in Cape Verde
In an effort to combat financial crimes and maintain stability in the national financial system, Banco de Cabo Verde plays a crucial role as the entity authorized to supervise the financial system. The bank’s prudential supervision and market conduct supervision are key components of its regulatory framework.
Macroprudential Supervision
Banco de Cabo Verde’s macroprudential supervision aims to identify and mitigate systemic risks that could threaten the stability of the financial system. This involves monitoring the overall health of the financial sector, including:
- Banks
- Insurance companies
- Other financial institutions
Microprudential Supervision
The bank also exercises microprudential supervision over individual financial institutions, ensuring they comply with regulatory requirements and maintain adequate capital buffers to absorb potential losses.
Market Conduct Supervision
Banco de Cabo Verde’s market conduct supervision focuses on monitoring the behavior of financial markets, including:
- Trading activities
- Ensuring fair and transparent market practices
This includes monitoring for signs of manipulation or fraud.
Supervision of Supervised Institutions
The bank supervises a wide range of institutions, including:
- Banks
- Insurance companies
- Pension funds
- Investment firms
- Other financial entities
These institutions are required to comply with regulatory requirements, including:
- Capital adequacy standards
- Risk management practices
Prevention of Financial Crimes
Banco de Cabo Verde works closely with law enforcement agencies to prevent and investigate financial crimes, including:
- Money laundering
- Terrorism financing
The bank also provides training and guidance to its supervised institutions on anti-money laundering and combating the financing of terrorism (CFT) requirements.
Illegal Financial Activities
The bank prohibits and penalizes illegal financial activities, including:
- Unauthorized banking and financial services
Individuals and entities that engage in such activities can face criminal charges and penalties.
Consumer Protection
Banco de Cabo Verde advises consumers to verify the authorization status of financial institutions before engaging in any financial transactions. The bank also encourages reporting of suspicious or unauthorized financial activities to its dedicated contact channels.
By exercising its regulatory powers effectively, Banco de Cabo Verde aims to maintain a stable and trustworthy financial system that supports economic growth and development in Cape Verde.