CBN issues new guidelines to Bureau de Change operators
The Central Bank of Nigeria (CBN) has issued fresh guidelines to Bureau de Change (BDCs) operators on ownership and requirements for licensing.The Central Bank of Nigeria (CBN) has issued fresh guidelines to Bureau de Change (BDCs) operators on ownership and requirements for licensing.
The Bank also authorised Western Union, Moneygram and RIA Financial Services to handle inward and outward money transfer services in Nigeria, Premium Times reports.
changes, the minimum capital requirement for the operation of BDCs in Nigeria has been
to N35 million (€158,000), in addition to a mandatory cautionary deposit.
The new guideline also forbids ownership of multiple BDCs and includes penalties for fraudsters.
All existing BDCs
comply with the requirement on mandatory cautionary deposit by July 15th.
The CBN said these regulatory steps were
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".