The Central Bank of Nigeria (CBN) has clarified its tier-based classification for Bureau De Changes (BDCs) and issued new guidelines following an exposure draft circulated earlier this year. The updated guidelines, incorporating public input, were posted on the CBN website on Wednesday.
According to Mrs. Sidi Ali, the Acting Director of the Corporate Communications Department, who spoke with reporters in Abuja on Thursday, the new guidelines introduce two tiers of licensing for BDCs.
The CBN had previously updated its regulatory guidelines for BDC operations in Nigeria after consulting with stakeholders. One significant change is the removal of the mandatory caution deposit of ₦200 million for tier-1 BDC license holders. Similarly, the ₦50 million deposit requirement for tier-2 license holders has also been waived.
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Additionally, the non-refundable annual license renewal fee has been abolished. Previously, tier-1 BDCs were required to pay ₦5 million, while tier-2 BDCs paid ₦1 million for renewal.
The bank stated that these adjustments aim to streamline BDC operations and enhance financial accessibility. BDC operators should take note of these revised guidelines for compliance.
Mrs. Ali reiterated the CBN’s invitation to interested parties to apply for BDC licenses under the new guidelines, effective June 3, 2024. Existing BDCs will have a six-month grace period to meet the new requirements.
Furthermore, Ali emphasized the CBN’s commitment to repositioning the BDC sub-sector to play its envisioned role in Nigeria’s foreign exchange market.
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