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The Central Bank of Nigeria (CBN) has issued a stern directive to Bureau De Change (BDC) operators nationwide, emphasizing strict adherence to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. This move underscores the apex bank’s heightened commitment to regulatory compliance and the enforcement of robust compliance management systems across Nigeria’s financial ecosystem.
In a circular dated April 17, 2025, and signed by Amonia Opusunju on behalf of the Director of the Compliance Department, the CBN disclosed the immediate commencement of mystery shopping exercises as part of a broader compliance assessment strategy. This proactive initiative is designed to evaluate the effectiveness of internal controls, Know Your Customer (KYC) protocols, and reporting standards among licensed BDCs.
According to the circular, the mystery shopping initiative aims to detect lapses in the implementation of Anti-Money Laundering/Combating the Financing of Terrorism and Counter-Proliferation Financing (AML/CFT/CPF) obligations. Anonymous compliance testers will be deployed to assess real-time operational compliance, customer onboarding procedures, and transaction monitoring frameworks.
“This initiative complements ongoing regulatory monitoring activities such as routine examinations, targeted inspections, and random spot checks. It seeks to ensure strict enforcement of compliance obligations, particularly in areas such as customer identification, suspicious transaction reporting, and proper adherence to KYC requirements,” the circular stated.
The CBN reiterated that BDCs must operate in line with the Money Laundering (Prevention and Prohibition) Act, 2022, the Terrorism (Prevention and Prohibition) Act, 2022, and the Regulatory and Supervisory Guidelines for Bureau De Change Operators in Nigeria, 2024. Failure to meet these regulatory requirements may result in heavy penalties, including fines and potential license revocation.
“Failure to comply with AML/CFT/CPF obligations—especially breaches detected through mystery shopping—will attract severe regulatory sanctions,” the CBN warned.
The apex bank further emphasized that all licensed BDCs must strengthen their compliance frameworks, conduct regular compliance audits, enhance staff training programs, and maintain diligent regulatory reporting practices.
“For the avoidance of doubt, full responsibility for regulatory risk management and operational compliance rests squarely with each licensed BDC,” the CBN added.
This latest move signals a more assertive regulatory posture from the CBN, aligning with ongoing efforts to curb financial crime, foster financial transparency, and enhance Nigeria’s overall compliance ecosystem through the deployment of Regulatory technology solutions and compliance automation.
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