The Central Bank of Nigeria (CBN) has updated its regulatory guidelines for Bureau De Change (BDC) operators, following consultations with stakeholders.
Jerrymusa.com reports that the changes include the removal of the mandatory caution deposit of N200m for tier-1 BDC licence holders and N50m for tier-2 licence holders, as well as the withdrawal of the non-refundable annual licence renewal fee, which was N5m for tier-1 BDCs and N1m for tier-2 BDCs.
The CBN aims to streamline BDC operations and enhance financial accessibility through these adjustments.
BDC to Apply For Fresh License
Existing BDCs must re-apply for a new licence based on their preferred tier or licence category, while new applicants must meet the conditions specified for their chosen BDC category.
Existing BDCs have six months from the effective date of the guidelines to meet the minimum capital requirements for their selected licence category.
The guidelines also revised permissible activities for BDCs to align with market needs and regulatory standards. BDCs are expected to adhere to corporate governance requirements and anti-money laundering, counter-terrorism financing, and counter-proliferation financing provisions. The CBN will begin receiving and processing license applications from the effective date of the guidelines.
Interested applicants must submit the required information electronically to bdclicense@cbn.gov.ng. The Regulatory and Supervisory Guidelines for BDC Operations replace the Revised Operational Guidelines for Bureau De Change in Nigeria issued in November 2015 and all related circulars and directives, and take effect from June 3, 2024.