The Central Bank of Nigeria has extended the deadline for compliance with the new requirements for the operation of Bureau De Change in Nigeria from July 15 to July 31.
The apex bank, in a circular to BDC operators said the guidelines for BDCs had been modified. For instance, part of the modification is that interest will now be paid on the mandatory cautionary deposit of N35 million, based on banking industry savings account rate.
The circular said the new decision was reached following representations made by all stakeholders to the apex bank. “Further to our Circular ref: FPRD/DIR/GEN/CIR/01/009 of June 23, 2014 on ‘New Requirements for the Operation of Bureau De Change in Nigeria’, the Central Bank of Nigeria, based on representations from stakeholders, clarifies as follows:
“Deadline for compliance with the New Licensing Requirements has been extended to July 31, 2014. Interest will be paid on the mandatory cautionary deposit of N35m, based on banking industry savings account rate;
“The CBN, on the expiration of the deadline of July 31, 2014, will cease to fund any Bureau De Change that fails to comply with the new requirements.
“Only Bureau De Change that meet the new requirements will qualify to be engaged as Agent by the licensed International Money Transfer Operators for inward and outward money transfer business in Nigeria.”
Meanwhile, the circular stated that all BDCs that paid the mandatory caution deposit of N500,000 to the CBN prior to 2009, should apply for refund.
The apex bank had, on June 23, reviewed the guidelines to check the persistent depletion in the country’s external reserves.
It explained that while the BDCs were licensed to provide access to foreign exchange to small scale end users and assist in the fight against illegal financial activities, the apex bank had observed weak and ineffective operational structure, which had made the sector to abandon the objectives for its establishment.
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