Decreto-Legislativo n.º 9/2018, de 28 de novembro, regime jurídico de acesso à atividade das instituições de pagamento e das instituições de moeda eletrónica (Legislative Decree No. 9/2018 on access to the activity of payment institutions and electronic money institutions) (Cabo Verde)

Legislative Decree No. 9/2018 of 28 November 2018 establishes the legal regime governing access to, and the pursuit of, the activity of payment institutions and electronic money institutions in Cabo Verde. It is the prudential and licensing counterpart to Legislative Decree No. 8/2018 (which sets the conduct and transparency rules for payment services and e-money), and together they form the core of Cabo Verde's 2018 payment-system modernisation. Cabo Verde is outside WAEMU; the regime is administered by the Banco de Cabo Verde (BCV). Scope and applicability: The Decree applies to entities seeking to provide payment services as 'payment institutions' or to issue electronic money as 'electronic money institutions', other than banks and other credit institutions already authorised for such activities. It sets the conditions of access to these regulated activities and the ongoing prudential requirements to which such institutions are subject. Core obligations and licensing requirements: Establishment requires prior authorisation from the Banco de Cabo Verde. Applicants must meet minimum initial capital requirements set according to the services offered, demonstrate suitable governance, fit-and-proper management and qualifying shareholders, robust internal control and risk management, and arrangements for safeguarding client funds (segregation of users' funds from the institution's own funds). Electronic money institutions must back outstanding electronic money with safeguarded funds and reimburse e-money at par on demand. Institutions are subject to ongoing own-funds/prudential requirements, AML/CFT obligations, outsourcing and agent rules, and reporting to the BCV. Supervision and enforcement: The Banco de Cabo Verde grants, refuses, suspends and withdraws authorisations, maintains the register of payment and electronic money institutions, conducts prudential supervision, and may impose corrective measures and administrative sanctions. The Decree, modelled on the EU payment-services and e-money directives, opened the Cape Verdean market to non-bank payment and e-money providers under central-bank supervision.

1. 1Sets the conditions of access to the activity of payment institutions and electronic money institutions in Cabo Verde
2. 2Requires prior authorisation from the Banco de Cabo Verde before commencing activity
3. 3Minimum initial capital fixed according to the services offered, plus ongoing own-funds/prudential requirements
4. 4Fit-and-proper governance and qualifying-shareholder requirements, internal control and risk management
5. 5Safeguarding and segregation of client funds; e-money backed by safeguarded funds and reimbursable at par
6. 6AML/CFT, agent/outsourcing and reporting obligations; BCV maintains the register and supervises
7. 7Complements Legislative Decree No. 8/2018 (conduct and transparency regime)