Posted by Under a new deadline of N2 billion for tier 1 operators and N500 million for tier 2 operators, the Central Bank of Nigeria has ordered all bureau de change (BDC) operators in the nation to reapply for new licenses by June 3, 2024.
The revised Regulatory and Supervisory Guidelines for BDC Operations in Nigeria set a new minimum capital for BDCs in February of this year. The most recent order was issued in a circular signed by Haruna Mustafa, director of the CBN’s Financial Policy and Regulation Department, and published yesterday.
The principles are part of measures to reposition the BDC sub-sector to play its envisioned role in the Nigerian foreign currency market, according to the circular.
The Guidelines updated the permitted operations, financial requirements, corporate governance standards, and AML/CFT/CPF provisions for BDCs, among other things, and added additional license requirements and types of BDCs.
“All existing BDCs shall re-apply for a new licence according to any of the tiers or licence categories of their choice as provided in the Guidelines and meet the minimum capital requirements for the license category applied for within six months from the effective date of the Guidelines,” it says.
New BDC license applicants must also fulfill the requirements for licencing that are specific to the BDC tier or category they select, as outlined in the Guidelines.