CAPE VERDE’S BANKING REGULATIONS AND COMPLIANCE: A GUIDE FOR FOREIGN INVESTORS
Cape Verde has established a well-managed and efficient banking system to attract foreign investment. The Central Bank of Cabo Verde (BCV) supervises the country’s eight onshore banks, offering a range of payment methods.
Banking System
The BCV is responsible for regulating the banking system, which has demonstrated stability and reliability. Bank branches are located throughout the inhabited islands, with ATMs and point-of-sale machines widely available. Debit cards, credit cards, and prepaid Visa cards are offered by all banks, making it easy for foreigners to establish a bank account.
Credit Instruments
Foreign investors can access credit instruments such as:
- Loans
- Letters of credit
- Lines of credit
under the same conditions as local investors. The legal guidelines for accounting systems are clear and consistent with international norms. Online payment and e-banking services are also becoming more common in Cape Verde.
Foreign Investment Operations
According to Article 9 of the External Investment Code, foreign investors have the right to transfer abroad all amounts resulting from foreign investment operations, including:
- Dividends
- Profits
- Capital
- Other earnings
However, there are exceptions for unregistered foreign-investment operations or those containing false information.
International Relations
Cape Verde has a working relationship with the New York Federal Reserve, which receives U.S. dollar transactions bound for the country. The country is also eligible for EXIM Bank programs, making it an attractive destination for international investors.
Conclusion
Overall, Cape Verde’s banking regulations and compliance are designed to facilitate foreign investment and trade, while ensuring the stability and security of the financial system. With its efficient banking system and favorable investment conditions, Cape Verde is an attractive option for foreign investors looking to expand their business in the region.