… Gives January 31 Deadline For Submission Of FX Compliance Report
The Central Bank of Nigeria has asked Bureau de Change (BDC) operators who paid for the 2025 licence renewal to apply for a refund.
This is in line with the bank’s decision to trim the country’s BDC dealers and stabilize the foreign exchange market.
The CBN said in a circular obtained by THE WHISTLER that the decision is backed by its Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria, 2024
The circular was addressed to BDC operators and stakeholders in the financial service industry.
The CBN said, “This is to inform all existing bureaux de change that further to the Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria, 2024, and the ongoing transition to the new BDC regulatory structure, the Central Bank of Nigeria has approved the waiver of 2025 licence renewal fee, effective immediately.
“Any bureau de change that has paid for 2025 licence renewal is hereby advised to apply to the Director, Financial Policy and Regulation Department, Central Bank of Nigeria for refund to its account from which the payment emanated.
“The CBN remains committed to fostering stability, transparency, and efficiency in the foreign exchange market while ensuring that operators align with the revised regulatory framework.”
The bank also released a Foreign Exchange (FX) Code, which applies to all authorised dealers licensed by the CBN under the CBN Act 2007, and the Bank and Other Financial Institutions Act (BOFIA) 2020
The FX Code requires market participants to ensure that illegal financial transfers are avoided and appropriate money laundering policies are put in place to protect the integrity of the domestic markets and the global financial framework as a whole.
In the fresh code, the bank directed all market participants to conduct a self-assessment and submit to the CBN a report on the institution’s level of compliance with the FX Code by January 31, 2025.
“All market participants will thereafter be required to submit to CBN a detailed compliance implementation plan that is approved and signed by its Board along with the extracts of the Board meeting,” the bank said.
According to the bank, market participants should have appropriate processes in place to identify and manage operational risks that may arise from human error, inadequate or failed systems or processes, or external events.
The CBN also directed participants to maintain an appropriate risk management framework with systems and internal controls to identify and manage the FX risks they face.
