CBN issues new BDC operation guidelines effetive June 3

The Central Bank of Nigeria (CBN) has issued fresh regulatory and supervisory guidelines for all Bureau De Change (BDC) operators and promoters of proposed BDCs in Nigeria for compliance.

The Guidelines, amongst others, introduce new licensing requirements and categories of BDCs as well as revise the permissible activities, financial requirements, corporate governance requirements and AML/CFT/CPF provisions for BDCs.

The Guidelines take effect from June 3, 2024.

All existing BDCs are required to re-apply for a new license according to any of the Tiers or license category of their choice as provided in the Guidelines.

They are expected to meet the minimum capital requirements for the license category applied for within six months from the effective date of the Guidelines.

The CBN stated that applicants for new BDC License are required to meet the conditions for the grant of license in accordance with the Tier or category of BDC chosen as stipulated in the Guidelines.

The CBN guidelines stipulate that receipt and processing of applications for license shall commence from the effective date of the Guidelines, and all applications should be submitted electronically and addressed to the Director, Financial Policy & Regulation Department, Central bank of Nigeria, Abuja.

“In this regard, interested applicants should submit the following information to: [email protected] to enable us create them on the portal for the submission of applications: (a) Name of the promoter; (b) Name of the proposed BDC; (c) E-mail address of the promoter, and (d) Phone number of the promoter.”

The CBN stated that this Guidelines supersedes the Revised Operational Guidelines for Bureau De Change in Nigeria issued in November 2015 and all related circulars and directives.

A circular signed by  Haruna B. Mustafa Director, Financial Policy and Regulation Department dated May 22, 2024 with reference number:
FPRD/DIR/PUB/CIR/002/010 and addressed to all Bureau De Change Operators and Stakeholders in the Financial Services Industry.

Titled, “Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria,” the CBN explained that the move is 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.

According to the apex bank, the action follows the conclusion of the stakeholder consultations and in exercise of the powers conferred on it by Section 56 of the Banks and Other Financial Institutions Act (BOFIA) 2020, the CBN hereby issues the attached Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria 2024 for compliance by all operators and promoters of proposed BDCs in Nigeria.

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