The Central Bank of Nigeria (CBN) has issued a draft of revised regulatory and supervisory guidelines for all Bureau de Change (BDC) operators and stakeholders in the financial services industry.
The guidelines, which seek to enhance the regulatory framework for BDC operations as part of ongoing reforms of the Nigerian foreign exchange market, were contained in a circular on Friday.
The circular, signed by Haruna Mustafa, Director, Financial Policy and Regulation Department of the CBN, had the 50-page guidelines attached.
The guidelines spell out the activities allowed, licensing requirements, corporate governance, and anti-money laundering and combating the financing of terrorism provisions for BDCs.
The draft document on the CBN’s website also listed new record-keeping and reporting requirements, corporate governance requirements, and financial requirements, among others.
“Pursuant to the powers conferred under Section 56 of the Banks and Other Financial Institutions Act, 2020 (BOFIA), the Central Bank of Nigeria (CBN) hereby issues this draft revised Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations in Nigeria for stakeholder comments and/or inputs.
“The Guidelines significantly enhance the regulatory framework for the operations of Bureau de Change as part of ongoing reforms of the Nigerian foreign exchange market.
“The Guidelines revise the permissible activities, licensing requirements, corporate governance, and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) provisions for BDCs.
“It also sets out new record-keeping and reporting requirements, among others,” the circular said.
Mustafa said the draft guidelines were available on the CBN’s website, www.cbn.gov.ng.
He urged stakeholders to forward their comments to the Director, Financial Policy and Regulation Department, CBN, Abuja, with soft copies mailed to PolicyandRegulationDivision@cbn.gov.ng by March 4, 2024.
The News Agency of Nigeria (NAN) reports that some portions of the 50-page draft document targeted transparency, the elimination of corruption, and the hoarding of forex.
It gave reasons for the preservation of records and conditions for the revocation of the BDC operations license.
“Every BDC shall maintain documents obtained from its customers for at least five years after the consummation of the transaction,” draft item 18.0 in the schedule noted.
It said the CBN may revoke the license of a BDC where the operator or its entities forges, mutilates, alters, or defaces any foreign currency or other FX instruments with intent to defraud.
The document also prohibited multiple ownership of BDCs and obtaining foreign currency from ineligible sources or from eligible ones in a fraudulent manner.
It also spelled out sanctions for other regulatory infractions. (NAN)
