LAGOS — The Central Bank of Nigeria (CBN), yesterday, confirmed that
2,688 bureaux de change (BDCs) have complied with new requirements for
operations in the country.
The list of the confirmed BDCs was released by CBN’s Financial Policy and Regulation Department in a circular entitled: “Updated list of confirmed Bureaux de Change in compliance with new requirements.”
It will be recalled that CBN had in a statement in June 2014, revised upward the minimum capital requirement for Bureau de Change (BDC) operations in Nigeria from N10 million to N35 million.
CBN said it introduced the new requirements in a bid to correct observed deficiencies in the operation of BDCs in Nigeria, which it noted had led to gross inefficiencies and sharp practices in the foreign exchange market, rent-seeking, depletion of the external reserves, financing of unauthorised transactions and dollarisation, among others.
The apex bank noted that while the capital requirements for all other CBN-regulated entities had been reviewed upward over the years, that of the dealers in the sub-sector of the forex market had remained the same.
CBN also reviewed the mandatory cautionary deposit for BDCs to N35 million, adding that the fee shall be deposited in a non-interest yielding account in the CBN upon the grant of approval-in-principle. In addition, while the application fee was raised to N100,000, the licensing fee to N1 million, the annual renewal fee for the forex dealers was also increased to N250,000.
All existing BDCs and those currently operating with a final approval letter were expected to comply with the new mandatory cautionary deposit requirements by July 15, 2014.
The statement signed by Mr. Isaac Okorafor, on behalf of the Director, Corporate Communications Department, added: “Furthermore, the compulsory membership of the Association of Bureau de Change Operators of Nigeria is no longer a requirement for the licensing of BDCs.”
CBN said the move would lead to BDCs that are properly structured, effectively regulated and well capitalised to meet the objectives for which they were licenced.
“It is expected that the emergence of well-capitalised and structured entities that can effectively perform the roles of BDCs in the economy; and partnership between BDCs and renowned companies engaged in inward and outward money transfer in Nigeria. It is in expectation of this collaboration that the CBN approved the Guidelines for International Money Transfer Services in Nigeria. Under the guidelines, Western Union, Moneygram and RIA Financial Services have been authorised to carry out inward and outward money transfer services in Nigeria.”
The list of the confirmed BDCs was released by CBN’s Financial Policy and Regulation Department in a circular entitled: “Updated list of confirmed Bureaux de Change in compliance with new requirements.”
It will be recalled that CBN had in a statement in June 2014, revised upward the minimum capital requirement for Bureau de Change (BDC) operations in Nigeria from N10 million to N35 million.
CBN said it introduced the new requirements in a bid to correct observed deficiencies in the operation of BDCs in Nigeria, which it noted had led to gross inefficiencies and sharp practices in the foreign exchange market, rent-seeking, depletion of the external reserves, financing of unauthorised transactions and dollarisation, among others.
The apex bank noted that while the capital requirements for all other CBN-regulated entities had been reviewed upward over the years, that of the dealers in the sub-sector of the forex market had remained the same.
CBN also reviewed the mandatory cautionary deposit for BDCs to N35 million, adding that the fee shall be deposited in a non-interest yielding account in the CBN upon the grant of approval-in-principle. In addition, while the application fee was raised to N100,000, the licensing fee to N1 million, the annual renewal fee for the forex dealers was also increased to N250,000.
All existing BDCs and those currently operating with a final approval letter were expected to comply with the new mandatory cautionary deposit requirements by July 15, 2014.
The statement signed by Mr. Isaac Okorafor, on behalf of the Director, Corporate Communications Department, added: “Furthermore, the compulsory membership of the Association of Bureau de Change Operators of Nigeria is no longer a requirement for the licensing of BDCs.”
CBN said the move would lead to BDCs that are properly structured, effectively regulated and well capitalised to meet the objectives for which they were licenced.
“It is expected that the emergence of well-capitalised and structured entities that can effectively perform the roles of BDCs in the economy; and partnership between BDCs and renowned companies engaged in inward and outward money transfer in Nigeria. It is in expectation of this collaboration that the CBN approved the Guidelines for International Money Transfer Services in Nigeria. Under the guidelines, Western Union, Moneygram and RIA Financial Services have been authorised to carry out inward and outward money transfer services in Nigeria.”
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