Central Bank of Nigeria (CBN) Revokes Licenses of 4,173 BDCs: Regulatory Update.
In a significant regulatory move, the Central Bank of Nigeria (CBN) has announced the revocation of operational licenses for over 4,000 Bureau De Change (BDC) operators under its supervision.
The decision stems from the non-compliance of these BDCs with crucial regulatory guidelines, as outlined by the apex bank.
This development was disclosed through an official statement issued by the Director of Corporate Communications at the CBN. Furthermore, the bank has made the list of affected BDCs available to the public on its official website.
According to the statement:
“The Central Bank of Nigeria (CBN), empowered by the Bank and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change 2015 (the Guidelines), has revoked the licenses of 4,173 Bureaux De Change Operators. The list of affected BDC operators can be found on the Bank’s website (www.cbn.gov.ng).”
“The revoked licenses are attributed to the failure of these institutions to adhere to essential regulatory provisions, including:
- Timely payment of all requisite fees, including license renewal, in accordance with the Guidelines.
- Submission of mandatory returns as per the Guidelines.
- Compliance with CBN guidelines, directives, and circulars, particularly those concerning Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations.”
Moreover, the CBN has emphasized ongoing revisions to the regulatory guidelines governing BDC operations. The public is urged to stay informed about the CBN’s current stance on this matter.
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Background: The CBN recently introduced a draft guideline aimed at regulating BDC operations nationwide.
Key provisions introduced in the updated guidelines for BDCs include:
- Implementation of a minimum share capital requirement of N2 billion for Tier-1 BDCs.
- Restrictions on cash transactions for forex buying and selling by BDCs, limited to $500.
- A yearly limit of $10,000 for forex transactions for school fees and related expenses, among other measures.
This regulatory update underscores the CBN’s commitment to ensuring compliance within the BDC sector while enhancing transparency and accountability in financial operations across Nigeria.
