Cabo Verde parliament approves closure of banks operating with restricted authorisation

25 February 2020

The parliament of Cabo Verde unanimously adopted a draft law allowing the closure of banking institutions with restricted authorisations, reported the Cape Verdean press.

Four banks currently operate in Cabo Verde with restricted authorisation – Portugal’s Montepio Geral, BIC (held by Angolan businesswoman Isabel dos Santos), Banco de Fomento Internacional (BFI) and Banco Privado Internacional (BPI).

The draft law adopted by the members of the National Assembly will lead to the closure of the banks operating with restricted authorisation, only for non-resident clients, which does not comply with the new legal requirements.

Prime Minister Ulisses Correia e Silva said at the beginning of February that the ultimatum presented to the banks that operate in Cabo Verde only with non-resident customers to transfer to a general license by the end of the year aims to make the banking system more transparent and comply with international standards.

The Bank of Cabo Verde said that two of the four banks that operate in the country with restricted authorisation (Credit Institutions with Restricted Authorisation – ICAR) had requested their licenses be extended for general use (Credit Institutions with General Authorisation – ICAG).

The central bank did not say which banks had asked for the extension of their license, and, in line with the Government’s ultimatum, the those that are not converted to ICAG will be closed by the end of the year.

Last week Cabo Verde was removed from the European Union’s blacklist of tax havens, a measure that Deputy Prime Minister and Minister of Finance, Olavo Correia, said was, “a solid step towards the international transparency that the country intends to achieve.” (macauhub)