Cabo Verde banking system considers stricter criteria for bank operations

24 July 2017

The Bank of Cabo Verde (Cape Verde) and the commercial banks operating in the country are considering introducing “stricter criteria” in bank transactions to strengthen the confidence of correspondent banks abroad, the governor of the central bank said in Praia.

Governor João Serra, referring to the meeting held in the capital between the banking supervisor and representatives of commercial banks, noted that banks need to have correspondents abroad to carry out transfers and said there were “many difficulties, particularly now with all the problems of terrorist financing and money laundering.”

João Serra also said that the way to overcome this issue is “by introducing even stricter control criteria for opening accounts, making deposits, capital movements, to give all the necessary comfort to the banks outside the country to become correspondents of national banks.”

The meeting also analysed financing of the newly approved Deposit Guarantee Fund, proposed by the Bank of Cabo Verde and approved by the government and parliament, and the respective regulation has yet to be approved.

The governor admitted that defining the financing method of the fund is a “complex situation” and that “it requires some care” because of the situation of the Cape Verdean banking sector which, he said, is not very good, and “a solution adjusted to the national reality,” now needs ot be found.

Banco Comercial do Atlântico (BCA), owned by Portuguese state-owned bank Caixa Geral de Depósitos (CGD) and Caixa Económica de Cabo Verde are the two largest banks operating in the country, including Banco Interatlântico (CGD) and Banco Angolano de Investimentos. (macauhub)