Cabo Verde: Selected Issues Paper

April 18, 2018

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Format: Chicago

Cabo Verde: Selected Issues Paper, (USA: International Monetary Fund, 2018) accessed September 18, 2024

Summary

This Selected Issues paper provides an overview of the nature and scope of corresponding banking relationships (CBRs) withdrawals in Cabo Verde and discusses policy options to address this challenge. The paper reports the results of a bank level survey and employs the minimum scope framework developed by Grolleman and Jutrsa (2017) on Cabo Verdean bank level data for 2014–2017. Banks in Cabo Verde have experienced a reduction in CBRs since 2013. Bank level survey shows that the terminations are broad based and involves both the central bank and commercial banks. The impact on the banking system has so far been minimal but banks reported facing increased cost of US dollar transactions. The results using the minimum scope framework shows that value of payment flows declined significantly between 2014 and 2016. There is a need for coordinated efforts by all relevant stakeholders at the institutional, national, and regional levels to contribute their knowledge and skills to the resolution of the problem.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Balance of payments, Banking, Commercial banks, Correspondent banking, Crime, Financial institutions, Financial services, Offshore financial centers, Remittances

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Business models, CBR issue, CBR withdrawal, Commercial banks, Correspondent bank, Correspondent banking, CR, Global, ISCR, Offshore financial centers, Remittances, Respondent bank, Smallest bank, USD account, USD CBRs

Publication Details

Pages:

15
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/105
Stock No:

1CPVEA2018002
ISBN:

9781484352328
ISSN:

1934-7685

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