2,839 BDC Operators Meet Recapitalization Deadline

The Central Bank of Nigeria, CBN, has listed 2,839 Bureaux De Change, BDCs, that have met the N70 million regulatory capital base.

In a circular released over the weekend, the CBN said the BDCs have complied with new N35 million capitalization requirements and another N35 million cautionary deposit stipulated for operators.

The apex bank had in June 2015, announced a new minimum capital requirement of N35 million for the operation of BDCs, up from the N10 million it was previously.

The new capital base, is contained in a new guideline for the industry backed by the CBN Act of 2007 and the Banks and Other Financial Institutions Act 2004 (BOFIA). Both statues, stipulate a non-refundable application fee of N100,000 and non-refundable licensing fee of N1 million.

The circular, which will come into effect this month, orders retail money exchanges to deposit a mandatory cautionary deposit of N35 million in an account with the CBN, in addition to a minimum capital requirement of N35 million.

The new guideline said no person should carry on the business of BDC in Nigeria, except with the prior authorisation of the CBN. It also stipulates that 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.

It said the application for BDC licence shall be processed in two stages, namely: approval-in-principle (AIP) and final licence.


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