Amidst a deepening forex crisis pushing the naira to a historic low of N2,000 against the dollar, the Central Bank of Nigeria (CBN) has implemented robust measures against Bureau De Change (BDC) operators.
In response to the economic downturn, the National Security Adviser, Mallam Nuhu Ribadu, directed the EFCC, DSS, and other agencies to combat currency speculators, leading to nationwide BDC raids and the arrest of illicit operators.
On Friday, the Financial Policy and Regulation Department of the CBN issued new guidelines for BDCs. These include a N2 billion capital requirement for Tier 1 licenses and N500 million for Tier 2.
Prohibitions against entities like banks and government agencies owning stakes in BDCs were outlined.
BDCs can buy/sell foreign currencies, issue prepaid cards, and serve as cash points, but cannot take deposits or engage in certain financial activities.
The guidelines also specify permissible sources of foreign currencies, sale conditions, and operational standards. Compliance with prudential requirements, Anti-Money Laundering/Combating the Financing of Terrorism regulations, and franchise standards for Tier 1 BDCs are mandated.
