Bureau De Change: Nigeria extends deadline to apply new guidelines

Jul 10, 2014

The Central Bank of Nigeria (CBN) has extended the deadline for new requirements issued to Bureau De Change (BDC) operators.

The Central Bank of Nigeria (CBN) has extended the deadline for new requirements issued to Bureau De Change (BDC) operators.

They now have until July 31,2014 (instead of July 15) to raise the minimum capital requirement for the operation of BDCs in Nigeria
to N35 million (€158,000), in addition to a mandatory cautionary deposit.

A circular released by CBN's director of financial policy and regulations Kevin Amugo said that interest
would be paid on the mandatory cautionary deposit based on the banking industry savings account rate, the Daily Trust reports.

It said that on the expiration of the deadline, the Central Bank would cease to fund any BDC that fails to comply with the new requirements and only operators that meet the new requirements would qualify to be engaged as agents by licensed international money transfer operators.

The CBN issued the guidelines in June 2014, which include an interdiction to own multiple BDCs, with penalties for fraudsters.

The institution also authorised Western Union, Moneygram and RIA Financial Services to handle inward and outward money transfer services in Nigeria.

It said these regulatory steps were
being
adopted to curb observed deficiencies in the operational effectiveness of BDCs, which showed "gross violation" of these objectives, "particularly the activities of operators only interested in profiteering from the foreign exchange market, regardless of prevailing official and interbank rates".