CBN Revises Guidelines For Bureau De Change Operators

Central Bank of Nigeria (CBN) has updated its regulatory guidelines for Bureau De Change (BDC) operators, following stakeholder consultations.

Gatekeepers News reports that the revised guidelines, effective June 3, 2024, aim to streamline BDC operations and enhance financial accessibility.

According to a circular issued by the Director, Financial Policy and Regulation Department, Haruna Mustafa, the changes include:

– Removal of the mandatory caution deposit of N200m for tier-1 BDC licence holders and N50m for tier-2 licence holders.
– Withdrawal of the non-refundable annual licence renewal fee, previously N5m for tier-1 BDCs and N1m for tier-2 BDCs.

Mustafa stated, “Existing BDCs must re-apply for a new licence based on their preferred tier or licence category as outlined in the guidelines. New BDC licence applicants must meet the conditions specified for their chosen BDC category.”

The guidelines also revised permissible activities for BDCs, ensuring alignment with market needs and regulatory standards. BDCs are expected to adhere to corporate governance requirements and anti-money laundering, counter-terrorism financing, and counter-proliferation financing provisions.

The CBN added that interested applicants should submit required information electronically to bdclicense@cbn.gov.ng.

The guidelines replace the Revised Operational Guidelines for Bureau De Change in Nigeria issued in November 2015 and all related circulars and directives.

The circular stated, “As part of reforms to re-position the Bureau De Change (BDC) sub-sector to play its envisioned role in the foreign exchange market in Nigeria, the Central Bank of Nigeria (CBN) issued the Draft Operational Guidelines for BDC Operations in Nigeria in February 2024, for stakeholder comments/inputs.”

“All existing BDCs shall: Re-apply for a new license according to any of the Tiers or license categories of their choice as provided in the Guidelines.”