Nigeria: All Bureau de Change now comply with new guidelines, CBN says
Some 2,699 licensed BDCs are meeting the new capitalisation requirements.All Nigerian Bureau de Change (BDCs) now comply with the new requirements for operations, the Central Bank of Nigeria (CBN) has revealed.
Some 2,699 licensed BDCs are meeting the N35 million ( €161,000) capitalisation requirements and another N35 million cautionary deposit for operators.
There were 3,208 registered BDCs in the country before the new regulation was announced in June 2014.
It raises the minimum capital requirement for BDCs' operations in Nigeria from N10 million to N35 million, in addition to a mandatory cautionary deposit.
The new guideline also forbids ownership of multiple BDCs and includes penalties for fraudsters, while authorising Western Union, Moneygram and RIA Financial Services to handle inward and outward money transfer services in Nigeria.
The CBN 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".