Microprudential Supervision aims to ensure the solvency and financial soundness of each financial institution individually, integrated in the respective consolidation perimeter, as well as each financial market, thereby ensuring the stability and efficient functioning of the financial system.

In fulfilling its mission, Banco de Cabo Verde has the following main duties:

- Actively promote the maintenance of a sound and prudent management of the supervised institutions and an appropriate balance between their risk profile and their levels of capital and liquidity; and

- Ensure microprudential regulation of activities and institutions subject to supervision.

Even though supervision is extremely important for the financial sector, financial institutions must develop mechanisms, instruments and means that ensure competent management by the administrative bodies, internal control management by the supervisory bodies and control functions. It is also important to highlight the role played by the institutions' external auditors.

Institutions must also develop solid devices that ensure sound and prudent risk management and long-term objectives. They must continuously and substantially ensure the fulfillment of all legal prudential requirements, safeguarding their own solvency and financial soundness and the security of the funds entrusted to them.

In carrying out its microprudential supervision duties, Banco de Cabo Verde verifies the fulfillment of the obligations to which the supervised institutions are subject, always intervening to ensure the correction of any mistakes, without exempting the institutions from their responsibilities, in particular with regard to having a sound and efficient governance model and internal control system.

​Welcome to the Securities Market Audit Office’s link, a means for ensuring the efficiency, equity, security and transparency of the securities market.

For this reason, you can find here information regarding the scope of AGMVM’s responsibilities, in particular in the areas of supervision, regulation, cooperation and promotion of the market.

The mission of Banco de Cabo Verde’s Market Conduct Supervision Office is to supervise the conduct of financial institutions in the banking and insurance sectors, as part of the supply and marketing of financial products and services to the public.

According to the International Financial Action Task Force​, money laundering consists of three phases:

• Placement: property and income are placed in financial and non-financial circuits, through, for example, deposits with financial institutions or investments in profitable activities and high value property;

• Circulation: property and income are subject to multiple and repeated transactions (for example, transfers of funds), with the purpose of distancing them from their criminal origin, eliminating any trace of their origin and ownership;

• Integration: the already recycled property and income are reintroduced into legitimate economic circuits, through their use, for example, to purchase goods and services.

In the Cabo Verdean legal system, money laundering is a crime provided for in Article 39 of Law No. 38/VII/2009, dated 27 April, as amended by Law No. 120/VIII/2016, dated 24 March.

 

Terrorism Financing

In conjunction with the money laundering prevention framework, legislative measures were adopted to facilitate the detection, prevention and suppression of terrorism financing, reducing the possibilities that those who commit acts of terrorism, terrorist organizations and groups and their funders will have access to the international financial system.

These measures include the freezing and loss of property belonging to perpetrators of acts of terrorism and those who support and finance terrorist groups and organizations, the duty to report transactions suspected of having some kind of connection with terrorism, the increase in duties to prevent money laundering (in particular the duty to identify) in the context of fund transfers, and the criminalization of terrorism financing.

In the Cabo Verdean legal system, the classification of terrorism financing as an autonomous crime is contained in Article 7 of Law No. 27/VIII/2013, dated 21 January, republished by Law No. 119/VIII/2016, dated 24 March.

Financial Institutions

Credit institutions, which include:

• Banks;

• Investment companies;

• Financial leasing companies;

• Factoring companies;

• Credit-purchase financing companies;

• Credit card issuing or managing companies;

• Mutual guarantee companies;

• Regional development companies;

• Others that are qualified as such by law;

• Electronic money institutions;

• Insurance companies and pension fund management companies;

• Pension funds and collective investment institutions, provided they are legal persons;

• Investment fund management companies and depositaries of amounts allocated to investment funds, in accordance with Decree-Law No. 15/2005, dated 14 February;

• Financial management companies;

• Venture capital companies;

• Currency exchange offices;

• Others that are qualified as such by law.

 

Financial Auxiliary Institutions:

• Financial intermediaries;

• Certified auditors and accountants and external auditors;

• Private credit information centers;

• Credit rating companies;

• Others that are qualified as such by law.​