CBN revokes licenses of 4,173 BDCs over breach of forex regulations

The Central Bank of Nigeria (CBN) has revoked the licenses of 4,173 Bureau De Change (BDC) Operators over a breach of foreign exchange regulations.

The apex bank made the announcement in a statement by its Acting Director, Corporate Communications, Sidi Ali Hakama, on the evening of Friday, March 1, 2024.

While noting that the list of the affected BDC operators is available on its website, the bank stressed that it is revising the regulatory and supervisory guidelines for Bureau de Change operations in Nigeria.

It added that compliance with the new requirements will be mandatory for all stakeholders in the sector.

"The Central Bank of Nigeria (CBN), in 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 (the Guidelines), has revoked the licenses of 4,173 Bureaux De Change Operators.

"The list of affected BDC operators is available on the Bank's website (www.cbn.gov.ng).

"The affected institutions failed to observe at least one of the following regulatory provisions:

"• Payment of all necessary fees, including licence renewal, within the stipulated period in line with the Guidelines.

"• Rendition of returns in line with the Guidelines.

"• Compliance with guidelines, directives and circulars of the CB, particularly Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT) and Counter-Proliferation Financing (CPF) regulations.

"The CB is revising the regulatory and supervisory guidelines for Bureau de Change operations in Nigeria. Compliance with the new requirements will be mandatory for all stakeholders in the sector when the revised guidelines become effective," the statement read.

The CBN advised members of the public to take note of the development and be guided accordingly.

The development is another indication of the CBN's resolve to restore sanity in the nation's foreign exchange market and its unrelenting efforts to enforce compliance with regulatory provisions.