Central Bank of Nigeria Revokes Licenses of Over 4,000 Bureau De Change Operators

In a significant move, the Central Bank of Nigeria (CBN) has revoked the operational licenses of more than 4,000 Bureau De Change (BDC) operators, citing non-compliance with regulatory guidelines as the primary reason. The apex bank announced the decision through a statement signed by the Director of Corporate Communications. The list of affected BDCs has been made public on the official CBN website.

The CBN invoked its powers under the Bank and Other Financial Institutions Act (BOFIA) 2020 and the Revised Operational Guidelines for Bureaux De Change 2015 to take this action. The BDCs in question reportedly failed to adhere to various regulatory provisions, including the payment of necessary fees within the stipulated period, timely license renewal, and compliance with guidelines related to Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations.

The regulatory body emphasized that the revision of guidelines for BDCs and their operations is underway. The public is urged to stay informed about the current position of the CBN regarding the operational standards for BDCs.

This development follows the recent introduction of a draft guideline for BDC operations in Nigeria by the CBN. The new guidelines include provisions such as a minimum share capital requirement of N2 billion for Tier-1 BDCs, restrictions on cash transactions by BDCs to $500 for buying and selling forex, and a $10,000 annual limit for school fees transactions, among other measures. The regulatory changes underscore the CBN’s commitment to enhancing the transparency and compliance of BDC operations in the country.