Amidst economic hardship, 4173 bureau de change companies have lost their operational license with the Central Bank of Nigeria (CBN). The government says this action is in a bid to sanitise the local currency market due to regulatory breaches. The apex bank’s decision followed alleged exchange rate manipulations by some currency traders including failure to comply with anti-money laundering and terrorism financing.
In its latest regulatory statement, the CBN said in the exercise of the powers conferred on it under the Bank and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change 2015 has revoked the licenses of 4,173 Bureaux De Change Operators.
It said the affected institutions failed to observe regulatory demands including payment of all necessary fees, including licence renewal, within the stipulated period in line with the Guidelines. Some operators committed infractions relating to rendition of their returns. Several BDCs did not comply with the regulator’s requirements.
CBN claimed that these currency traders failed to follow its directives and circulars, particularly Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT) and Counter-Proliferation Financing (CPF) regulations.
The notice further stated that the CBN is revising the regulatory and supervisory guidelines for Bureau de Change operations in Nigeria.
It said compliance with the new requirements will be mandatory for all stakeholders in the sector when the revised guidelines become effective. Members of the public are hereby advised to take note and be guided accordingly.
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