It covers payment methods and information on, banking systems, foreign exchange controls, and U.S. and correspondent banking.
Methods of Payment
Payments can be made through bank transfers directly into the supplier’s account in Cabo Verde or to the supplier’s home bank account. The private sector has access to some credit instruments such as loans, letters of credit, and lines of credit. The legal guidelines for accounting systems are clear.
Accounts can be established at any of the country’s banks. Bank transfers, debit card payments, and checks are common methods of payment. Although international credit cards are not widely used, Visa cards are becoming more commonly accepted, particularly in the tourism sector. Online payment and e-banking are also becoming more common.
For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide.
Cabo Verde has a small but relatively sound, efficient, and well-managed banking system supervised and regulated by the Central Bank of Cabo Verde (BCV). BCV is responsible for regulation of the sector and has demonstrated itself as a reliable and stable entity. The onshore segment is composed of eight banks:
- · Banco Comercial do Atlântico
- · Caixa Económica de Cabo Verde
- · Banco Interatlântico
- · Banco Cabo-Verdiano de Negócios
- · Banco BAI Cabo Verde
- · Ecobank-Cabo Verde
- · International Investment Bank
- · Banco de Fomento Internacional
Bank branches are located throughout the inhabited islands, and ATMs and point-of-sale (POS) machines are widely available. Debit cards, credit cards, and prepaid Visa cards are available through all banks. Establishing a bank account is relatively easy: the client must provide proper identification and obtain a taxpayer number from the Casa do Cidadão. The process is independent of nationality and can be completed within a day. Bank credit is available to foreign investors under the same conditions as Cabo Verdean investors. The private sector has access to some credit instruments such as loans, letters of credit, and lines of credit, although local and foreign investors sometimes complain about a lack of commercial products for accessing credit. The legal guidelines for accounting systems are clear and consistent with international norms.
The onshore banks in the market are embracing technological innovation. Internet-based tools and services in the banking sector continue to grow in Cabo Verde, gaining increasing importance and changing the model of the client-bank relationship of the past. Since early 2022, there are no offshore banks operating in Cabo Verde.
Foreign companies and investors are subject to the same laws, procedures, and protections as their Cabo Verdean counterparts.
Foreign Exchange Controls
Article 9 of Cabo Verde’s External Investment Code grants foreign investors the right to transfer abroad, in a freely convertible currency and at the exchange rate prevailing in Cabo Verde on the date the request is made, all amounts resulting from foreign investment operations duly registered, namely the following:
- dividends and profits resulting from foreign investment operations
- capital derived from alienation, liquidation, or extinction of enterprises, branches, or other forms of representation or ownership that constitute their foreign investment, as well as capital resulting from the alienation of assets linked to the operation of those facilities, propriety of the investor
- any amount earned as a result of contracts that constitute foreign investment
- sums referring to amortization and interest rates resulting from financial operations that constitute foreign investment
- income derived from the exercise of management functions performed as a foreign investor.
Exceptions to this policy include:
- amounts related to a foreign-investment operation non-registered in accordance with the law
- declarations and proofs presented containing false or inadequate information
U.S. Banks and Local Correspondent Banks
Cabo Verde Central Bank (BCV) has a working relationship with the New York Federal Reserve, which receives all U.S. dollar transactions bound for Cabo Verde. Cabo Verde is eligible for EXIM Bank programs.