The Central Financial institution of Nigeria has directed all bureau de change (BDC) operators within the nation to reapply for brand new licences by June 3, 2024 and meet the brand new deadline of N2 billion for tier 1 and N500 million for tier 2 operators.
A brand new minimal capital for BDCs had been introduced within the revised Regulatory and Supervisory Pointers for BDC Operations in Nigeria, in February this 12 months. A round issued yesterday and signed by CBN director, Monetary Coverage and Regulation Division, Haruna Mustafa, had given the newest directive.
In line with the round, the rules are a part of reforms to re-position the BDC sub-sector to play its envisioned position within the overseas alternate market in Nigeria.
The Pointers, amongst others, launched new licensing necessities and classes of BDCs in addition to revised the permissible actions, monetary necessities, company governance necessities and AML/CFT/CPF provisions for BDCs.
Consequently, it stated “all current BDCs shall re-apply for a brand new licence in response to any of the tiers or licence classes of their alternative as offered within the Pointers and meet the minimal capital necessities for the license class utilized for inside six months from the efficient date of the Pointers.”
Additionally, candidates for brand new BDC licences are required to satisfy the circumstances for the grant of licence in accordance with the tier or class of BDC chosen as stipulated within the Pointers.
BDC operators are additionally anticipated to submit the names of a promoter, title of the proposed BDC, e-mail tackle of the promoter and telephone variety of the promoter.
LEADERSHIP remembers that in March, the CBN had revoked the licences of 4,173 BDC operators for failing to look at regulatory provisions. A press release signed by Sidi Ali, CBN’s performing director, company communications, defined that the BDCs failed to look at a minimum of considered one of its regulatory provisions, resembling cost of all mandatory charges, together with licence renewal, throughout the stipulated interval in keeping with the rules.
At the moment, the variety of BDCs stands at 5,690, in response to knowledge from the CBN.