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In a significant move to enhance regulatory compliance in the local currency market, the Central Bank of Nigeria (CBN) has invalidated the licenses of 4,173 bureau de change (BDC) companies operating in the country. The decision comes in response to reported regulatory breaches, including alleged exchange rate manipulations and non-compliance with anti-money laundering and terrorism financing measures by certain currency traders.
The CBN, exercising its authority under the Bank and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change 2015, outlined the regulatory grounds for the license revocation. The affected institutions were found to have failed in meeting regulatory requirements, such as timely payment of all necessary fees, including license renewal, as outlined in the Guidelines. Additionally, some operators were involved in infractions related to the submission of their financial returns, while others did not adhere to the regulatory directives.
The central bank emphasized that these BDCs disregarded its guidelines and circulars, particularly those related to Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations.
The regulatory statement also indicated that the CBN is in the process of revising the guidelines for the operation and supervision of Bureaux de Change in Nigeria. Upon the implementation of the revised guidelines, strict compliance will be mandatory for all stakeholders in the sector. The public is advised to take note of these developments and adhere to the forthcoming regulatory requirements.
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