Nigeria’s central bank (CBN) has banned 4173 bureau de change firms from functioning in the nation owing to regulatory infractions in an effort to clean up the local currency market. The top bank’s ruling came after several currency dealers were accused of manipulating exchange rates, including by breaking anti-money laundering and anti-terrorism funding regulations.
The CBN announced in its most recent regulatory statement that it has terminated the licenses of 4,173 Bureaux De Change Operators in accordance with the authority granted to it by the Bank and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change 2015.
It said the affected institutions failed to observe regulatory demands including payment of all necessary fees, including licence renewal, within the stipulated period in line with the Guidelines. Some operators committed infractions relating to rendition of their returns. Several BDCs did not comply with the regulator’s requirements.
CBN claimed that these currency traders failed to follow its directives and circulars, particularly Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT) and Counter-Proliferation Financing (CPF) regulations.
The notice further stated that the CBN is revising the regulatory and supervisory guidelines for Bureau de Change operations in Nigeria.
It said compliance with the new requirements will be mandatory for all stakeholders in the sector when the revised guidelines become effective. Members of the public are hereby advised to take note and be guided accordingly.
