Regulatory Alerts2014-04-23
Law on Financial Activities and Institutions (LAIF) (Articles 20 et seq.)
The National Assembly of Cape Verde enacted Law No. 62/VIII/2014 to regulate the establishment, authorization, supervision, and operation of financial institutions and auxiliary entities within Cape Verdean territory. The legislation mandates that the Bank of Cape Verde grant case-by-case authorization to domestic financial institutions and foreign branches, requiring compliance with strict capital, governance, risk management, and reporting standards. It further establishes comprehensive grounds for authorization refusal, revocation, and expiry, while extending applicable tax benefits to restricted-authorization credit institutions and clarifying the legal framework for representative offices, subsidiaries, and financial contracts.
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