Nigeria: Apex bank mandates new licenses for all Bureau De Change operators

The Central Bank of Nigeria (CBN) has directed all Bureau de Change (BDC) operators in the country to reapply for operational licenses under new regulatory guidelines.

This directive follows the introduction of revised licensing requirements and categories for BDCs, aimed at repositioning the sector within the foreign exchange market.

In an official statement issued on Wednesday, Haruna B. Mustafa, CBN’s Director of Financial Policy and Regulation Department, announced that the new guidelines would take effect from June 3, 2024.

The CBN’s directive comes after extensive stakeholder consultations and is part of broader reforms to enhance the BDC sub-sector’s role.

The new guidelines, which replace the Revised Operational Guidelines issued in November 2015, stipulate updated licensing requirements, permissible activities, financial obligations, corporate governance standards, and anti-money laundering/counter-financing of terrorism (AML/CFT) provisions for BDCs.

“As part of reforms to re-position the Bureau De Change (BDC) sub-sector to play its envisioned role in the foreign exchange market in Nigeria, the Central Bank of Nigeria (CBN) issued the Draft Operational Guidelines for BDC Operations in Nigeria in February 2024, for stakeholder comments/inputs,” the statement read.

The guidelines mandate that existing BDCs and promoters of new BDCs must reapply for a license under their chosen tier or category and meet the specified minimum capital requirements within six months from the effective date.

The CBN emphasized that compliance with the new guidelines is mandatory for continued operation in the parallel forex market.

These measures are intended to strengthen regulatory oversight and improve the functionality and integrity of the BDC sub-sector in Nigeria.