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HomeTop NewsCBN reviews Bureau de Change guidelines, directs operators to reapply for licence

CBN reviews Bureau de Change guidelines, directs operators to reapply for licence

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By Temi Olowu

In a move aimed at streamlining operations and boosting accessibility, the Central Bank of Nigeria (CBN) has announced significant revisions to its regulatory guidelines for Bureau de Change (BDC) operators.

Following stakeholder consultations, the CBN has implemented the following changes:

  • Elimination of Caution Deposits: The mandatory caution deposit of N200 million for tier-1 BDC licenses and N50 million for tier-2 licenses has been scrapped.
  • Scrapped License Renewal Fees: The previously imposed non-refundable annual license renewal fees – N5 million for tier-1 and N1 million for tier-2 BDCs – have been abolished.

The CBN, through its Director of Financial Policy and Regulation, Haruna Mustafa, stated that these adjustments aim to “streamline BDC operations and enhance financial accessibility.”

New Licensing Requirements

A key aspect of the revised guidelines involves a relicensing process. All existing BDCs must reapply for licenses under their preferred tiers within the framework outlined in the new guidelines.

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New applicants will also need to comply with the requirements for their chosen BDC category. Existing BDCs are granted a six-month grace period from the effective date (June 3, 2024) to meet the minimum capital requirements for their selected tier.

The revised guidelines also address permissible activities for BDCs, ensuring alignment with current market needs and regulatory standards. Additionally, the CBN emphasizes adherence to corporate governance principles and anti-money laundering/counter-terrorism financing (AML/CFT/CPF) regulations.

The CBN has established an electronic application process for new BDC licenses. Interested parties can submit application information, including promoter details and contact information, to bdclicense@cbn.gov.ng.

These revised guidelines supersede all previous directives and regulations related to BDC operations.

The CBN’s intention is to create a more dynamic and accessible BDC sector that can effectively serve Nigeria’s foreign exchange market.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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