The Central Bank of Nigeria (CBN) has introduced a revised regulatory framework aimed at enhancing oversight of Bureau De Change (BDC) operations to address concerns in the foreign exchange market.
The CBN mandates that sellers of foreign exchange to BDCs, involving amounts equal to or exceeding $10,000, must declare the sources of their forex.
In an effort to curb excesses and instill transparency, the apex bank outlines that these sellers must adhere to Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regulations, as well as comply with foreign exchange laws and regulations.
The guidelines issued by the CBN cover a spectrum of aspects, encompassing permissible activities, licensing requirements, corporate governance, and AML/CFT provisions for BDCs. Notably, the guidelines specify various legitimate sources from which BDCs can acquire foreign currencies.
These include tourists, returnees from the diaspora, expatriates with foreign exchange inflows from work, travel, investment, or their domiciliary accounts, as well as residents with similar foreign exchange inflows.
International Money Transfer Operators (IMTOs), embassies, authorized buyers of foreign currencies like hotels, the Nigerian Foreign Exchange Market (NFEM), and other sources designated by the CBN are also mentioned.
Additionally, the guidelines permit customers to transfer foreign currencies from their individual domiciliary accounts with Nigerian banks to BDCs.
Notably, any digital or transfer-based purchases of foreign currencies are required to be credited to the BDC’s Nigerian domiciliary account in accordance with the outlined regulations.