The Central Bank of Nigeria (CBN) has tightened the noose against erring Bureaux De Change (BDC) operators over annual licence renewal.
This comes as the apex bank has changed the time for the annual licence renewal for the BDCs from 30 days of the subsequent year to March 31 of every year.
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In a circular to all BDCs dated June 23, 2021, and signed by Kevin Amugo, director, financial policy and regulation, the observed recurring discrepancies in the payments of annual licence renewal fees by the operators.
According to the circular, the discrepancies include postings with incomplete or unclear narrations as well as the use of third party names that cannot be linked to any BDC.
Consequently, the CBN said going forward all BDCs are required to pay their annual licence renewal fees from their operating accounts with Deposit Money Banks (DMBs) by March 31 of every year.
The CBN said in the circular that only payments made in the names of the BDCs within the regulatory deadline will be processed.
“In line with the requirements of the revised operational guidelines for Bureaux De Change in Nigeria (2015), the CBN reiterates that failure to comply with the directive would attract necessary sanctions against the defaulting BDCs,” the apex bank said in the circular
The 2015 revised operational guidelines for BDCs stated that every BDC licence shall expire on December 31 of each year and shall be renewed within the 30 days of the subsequent year with a non-refundable fee of N250,000 only or at such a fee as may be stipulated by the CBN from time to time, subject to its operations being satisfactory to the bank.
It was stated in the guidelines that no person shall carry on the business of Bureau De Change in Nigeria, except with the prior authorisation of the CBN.
A BDC shall be construed as any company that is licenced to carry on small scale foreign exchange business in Nigeria and whose sole object is the carrying on of such business on a stand-alone basis.
The application for BDC licence shall be processed in two stages, namely: Approval-in-Principle (AIP) and final licence.
Under the requirements for the grant of final licence, the guidelines said, not later than six months after the grant of AIP, the promoters of a proposed BDC shall submit an application for the grant of a final licence to the governor, Central Bank of Nigeria, Abuja, with the following documents: Evidence of payment of a non-refundable licencing fee of N1 million only or any other amount as may be determined by the CBN from time to time.
The names, designations and signed Curricula Vitae (CV) of the proposed members of the top management.
Evidence of incorporation of the company with CAC, evidence of payment of N35 million mandatory caution deposit, or any other amount as may be determined by the CBN from time to time, into a designated CBN account, and evidence of having suitable office accommodation for the operation of the proposed BDC.
