Nigeria's CBN revokes licences of 4,173 bureau de change operators

The Central Bank of Nigeria (CBN) revoked the operating licences of 4,173 bureau de change (BDC) operators, it said in a statement issued on 1 March 2024 and signed by its Acting Director of Corporate Communications, Hakama Sidi Ali.

The CBN said it had acted in exercise of the powers conferred on it under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Operational Guidelines for Bureaux De Change 2015.

GROUNDS FOR REVOCATION

According to the central bank, the affected operators breached one or more of its regulatory provisions. The infractions included failure to renew their licences within the stipulated period, failure to render returns, and failure to comply with the CBN's guidelines, directives and circulars, particularly its regulations on anti-money laundering (AML), countering the financing of terrorism (CFT) and counter-proliferation financing (CPF).

The CBN published a list of the affected operators and advised members of the public to take note and be guided accordingly.

REVISED GUIDELINES IN PREPARATION

The revocations came a week after the CBN, on 23 February 2024, issued an exposure draft of revised regulatory and supervisory guidelines for BDC operations. The draft proposed raising minimum capital requirements to N2 billion for Tier 1 operators and N500 million for Tier 2 operators, and revised permissible activities, licensing requirements, corporate governance and AML/CFT provisions, as well as setting new record-keeping and reporting requirements.

The Association of Bureaux De Change Operators of Nigeria (ABCON), responding to the draft guidelines, urged its members to abide by the laws governing their operations and warned them against regulatory violations and street trading.