Abuja: By Segun AJAYI
Published, Sunday, February 25, 2024
CENTRAL BANK OF NIGERIA (CBN) has recently released new regulatory and supervisory guidelines for Bureau de Change (BDC) operations in Nigeria, shaking up the industry with several key changes.
One of the major changes, according to the Central Bank of Nigeria is the introduction of tiers for Bureau de Change, BDCs.
The first Tier is that BDCs must have a minimum capital of N2 billion for a national license, while Tier 2 BDCs require a minimum capital of N500 million and can only operate within one state with a maximum of 3 branches.
Individuals are now prohibited from owning more than one BDC license, preventing potential monopolies in the industry.
BDCs can now serve as agents for International Money Transfer Operators (IMTOs), disbursing funds on their behalf.
Cash amounts under $500 can be received, while larger amounts must be deposited in bank accounts. Additionally, BDCs will now have the ability to issue Naira cards.
The guidelines also allow BDCs to issue Personal Travel Allowances (PTAs) and Business Travel Allowances (BTAs).
CBN also says, in order to increase transparency and combat money laundering, BDCs are required to go digital and integrate with CBN reporting platforms, as well as other financial systems like the Federal Inland Revenue Service (FIRS) and Nigeria Inter-Bank Settlement System (NIBSS) for verification purposes.
Other notable changes include gender equality on BDC boards, strict licensing requirements similar to financial institutions, and restrictions on street trading.
Overall, the new guidelines aim to modernize and regulate the BDC industry in Nigeria, bringing it more in line with international standards.
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