The Central Bank of Nigeria (CBN) has introduced new regulations limiting bureau de change (BDC) operators to purchasing a maximum of $25,000 per week from a single bank.
On December 20 2024, CBN had directed the BDCs to purchase
FX from banks from December 19, 2024, to January 30, 2025.
However, on Monday, CBN extended the timeframe to May 30.
In a circular on Wednesday signed by W. J. Kanya, acting
director of the trade and exchange department, CBN provided guidelines for the
purchase and sale of the FX.
CBN mandated that BDCs must select one bank and procure
their weekly FX allocation.
“A BDC shall approach its preferred Authorised Dealer Bank
(ADB) and can only procure the said amount from only that bank of its choice in
a week. Any breach of this condition will attract appropriate sanction,” the
circular reads.
“The selling rate by the Authorised Dealers to BDCs shall be
the prevailing day rate at NFEM window.”
Additionally, the CBN mandated that FX purchased by BDCs
from banks must be sold to end-users at a rate not exceeding a one percent
margin above the buying rate.
According to the circular, the one percent margin shall be
applicable to all funds to be retailed by BDCs regardless of sources of FX.
CBN also mandated banks to submit weekly returns on sales to
BDCs, while BDC operators are required to render daily returns on FX purchases
on the financial institution’s forex reporting system (FIFX).
The apex bank further directed that FX purchased by BDCs
must be disbursed for business travel allowance, personal travel allowance,
overseas school fees, and overseas medical fees.
CBN added in all cases the maximum disbursement per
transaction should not exceed $5,000 quarterly.
“Records shall be maintained for all transactions by the
BDCs showing the BVN of the end-user, including endorsement of the amount
disbursed in the International Passport of the beneficiary,” the regulator
said.
“It is to be noted that Authorised Dealer Banks and BDC
operators shall ensure strict compliance to the provisions of Anti-Money
Laundering Laws and observance of appropriate KYC principles in the handling of
these transactions.”
The apex bank warned that any diversion of funds or
violation of the guidelines would attract sanctions, including suspension of
dealership licences.
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