CBN revokes 4,173 Bureau De Change operators’ licence

THE Central Bank of Nigeria (CBN) said it had revoked the licenses of 4,173 Bureau de Change (BDC) operators.

The apex bank disclosed this in a statement issued and signed by its Acting Director of Corporate Communications, Hakama Sidi-Ali, on Friday, March 1.

Part of the statement reads, “The Central Bank of Nigeria (CBN) in exercise of the powers conferred on it under 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.”

According to the CBN, the affected institutions ran afoul of one or all of its regulatory provisions.

The offences included failure to observe license renewal within the stipulated period in line with the guidelines and rendition of returns.

Another infraction was the failure to comply with guidelines, directives and circulars of the CBN, particularly Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations.

The ICIR reports that the CBN is revising the regulatory and supervisory guidelines for Bureau de Change operations in Nigeria. Compliance with the new requirements will be mandatory for all stakeholders in the sector when the revised guidelines take effect.

“Members of the public are hereby advised to take note and be guided accordingly,” the CBN said.

The list of the affected BDC operators can be viewed here.

The ICIR further reports that the apex had, on Friday, February 23, issued a revised regulatory guideline for the BDCs operators.

According to the exposure draft, the apex bank proposed new regulations to increase the minimum capital requirements to N2 billion for Tier-1 BDC operators and N500 million for Tier 2.






     

     

    “The Guidelines revise the permissible activities, licensing requirements, corporate governance and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CT) provisions for BDCs. It also sets out new record-keeping and reporting requirements, among others,” CBN stated in the revised guidelines.

    Reacting to the new guideline, the president of the Association of Bureau De Change Operators of Nigeria (ABCON, Aminu Gwadabe, instructed its members to abide by extant laws establishing their operation, warning them against regulatory violation and engaging in street trading.

    The revised guideline came amid the Economic and Financial Crimes Commission (EFCC) raid against illegal BDC operators.

    He said, “In line with our obligations, ABCON supports the drive of authorities to streamline any illegal economic behaviours.”

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