The Central Bank of Nigeria has revised its regulatory guidelines for Bureau De Change operators after consulting with stakeholders.
The changes include the removal of the mandatory caution deposit of N200 million for tier-1 BDC license holders and the waiver of the N50 million deposit for tier-2 license holders.
Additionally, the non-refundable annual license renewal fee has been withdrawn, previously set at N5 million for tier-1 BDCs and N1 million for tier-2 BDCs.
These adjustments aim to streamline BDC operations and enhance financial accessibility, according to Haruna Mustafa, Director of the Financial Policy and Regulation Department at the apex bank.
Existing BDCs must re-apply for a new license based on their preferred tier or license category, while new BDC license applicants must meet the specified conditions for their chosen category.
Furthermore, existing BDCs must meet the minimum capital requirements for their selected license category within six months from the effective date of the guidelines.
The permissible activities for BDCs have also been revised to align with market needs and regulatory standards, with emphasis on adherence to corporate governance requirements and anti-money laundering, counter-terrorism financing, and counter-proliferation financing provisions.
Receipt and processing of license applications will commence from the effective date of the guideline. Interested applicants are required to submit relevant information electronically to [email protected], including the name of the promoter, proposed BDC name, email address, and phone number.
These guidelines supersede the Revised Operational Guidelines for Bureau De Change in Nigeria issued in November 2015 and all related circulars and directives.
The Regulatory and Supervisory Guidelines for BDC Operations will take effect from June 3, 2024. The circular from the Central Bank of Nigeria emphasizes the need for compliance with the new guidelines, which introduce new licensing requirements, categories, permissible activities, financial requirements, corporate governance standards, and anti-money laundering provisions for BDCs.
