BREAKING: Nigeria’s Central Bank Directs All Bureau De Change Operators To Apply For New Licences

The Central Bank of Nigeria (CBN) has issued a directive requiring all Bureau de Change operators (BDCs) in the country to reapply for operational licenses. This directive comes alongside the introduction of new licensing requirements and categories for BDCs, as well as revisions to permissible activities within the sector.

According to a statement signed by Haruna B. Mustafa, Director of the CBN’s Financial Policy and Regulation Department, the decision follows stakeholder consultations and aims to reposition the BDC sub-sector within the foreign exchange market. The new guidelines are set to take effect from June 3, 2024.

The CBN’s directive outlines several key points:

1. **New Licensing Requirements**: The CBN has introduced new licensing requirements and categories for BDCs, aimed at enhancing their effectiveness within the foreign exchange market.

2. **Reapplication for Licenses**: Existing BDCs and promoters of proposed BDCs must reapply for new licenses according to the tier or license category of their choice as provided in the guidelines. They are required to meet the minimum capital requirements for the chosen license category within six months from the effective date of the guidelines.

3. **Compliance with Guidelines**: Applicants for new BDC licenses must adhere to the conditions outlined in the guidelines for the grant of licenses in accordance with the chosen tier or category.

4. **Superseding Previous Guidelines**: The new guidelines supersede the Revised Operational Guidelines for Bureau De Change in Nigeria issued in November 2015, as well as all related circulars and directives.

The CBN emphasizes the importance of these reforms in repositioning the BDC sub-sector and ensuring compliance with international standards, including anti-money laundering and combating the financing of terrorism provisions.

In summary, the CBN’s directive mandates all BDC operators in Nigeria to reapply for operational licenses, adhere to new licensing requirements and categories, and meet minimum capital requirements within a specified timeframe. These reforms aim to enhance the effectiveness and integrity of the BDC sub-sector within the foreign exchange market.