The Central Bank of Nigeria (CBN) has introduced a new directive requiring foreign exchange sellers to Bureau De Change (BDC) to declare the equivalent of 10,000 dollars and above, along with disclosing their forex sources.
This measure, part of a revised regulatory framework, aims to curb excesses of BDCs and address uncertainty in the foreign exchange market. Haruna Mustapha, Director of the CBN’s Financial Policy and Regulation Department, stated that sellers must also adhere to Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regulations.
The guidelines, part of ongoing reforms in the Nigerian foreign exchange market, enhance the regulatory framework for BDC operations, encompassing permissible activities, licensing requirements, corporate governance, AML/CFT provisions, record-keeping, and reporting requirements. The guidelines also mandate prior authorization from the CBN for any entity to operate as a BDC in Nigeria, specifically defining BDCs as companies licensed by the CBN for retail foreign exchange business.