By Tochukwu Bliss, Abuja
The Central Bank of Nigeria (CBN), yesterday, revoked the licences of 4,173 bureau de change (BDC) operators, and directed them to reapply.
This is contained in a circular, dated May 22, 2024, with reference number: FPRD/DIR/PUB/CIR/002/010, https://www.cbn.gov.ng/Out/2024/CCD/LIST%20OF%20REVOKED%20BDC%20LICENSES_MARCH%201_%202024.pdf, and signed by the Director, Financial Policy and Regulation Department, Haruna Mustafa.
Titled: “Regulatory and Supervisory Guidelines for Bureau de Change Operations in Nigeria,” https://www.cbn.gov.ng/Out/2024/FPRD/APPROVED%20BDC%20GUIDELINES%20May%2022%202024.pdf, the circular directed that: “All existing BDCs shall: Re-apply for a new licence according to any of the tiers or licence category of their choice as provided in the guidelines,” effective June 3, 2024.
The apex bank explained that the move is “…part of reforms to reposition the Bureau de Change (BDCs) sub-sector to play its envisioned role in the foreign exchange market in Nigeria.”
This is sequel to “the Draft Operational Guidelines for BDC Operators in Nigeria in February 2024, for stakeholders’ comments/inputs.”
All existing BDCs shall: Re-apply for a new licence according to any of the tiers or licence category of their choice as provided in the guidelines.
The circular added: “The Guidelines, amongst others, introduces new licensing requirements and categories of BDCs as well as revises the permissible activities, financial requirements, corporate governance requirement and AML/CFT/CPF provisions for BDCs.”
In addition to meeting all the reapplication conditions, including meeting the minimum paid capital for the respective tiers of operations, BDC operators are also expected to submit their applications electronically.
Recall that the CBN had set the application fee for Tier-1 licence at N1 million, minimum capital at N2 billion and licensing fee at N5 million.
For Tier 2 was pegged at N250,000, minimum capital of N500 million and licensing fee N2 million.
It, however, struck out the mandatory caution fees of N200 million for Tier-1 and N50 million for Tier-2 BDC operators and forbade them from engaging in cryptocurrency assets, derivative trading, international outward transfers and accepting international inward transfers.
