CBN speaks on new licensing requirements for Bureau de Change operators

The Central Bank of Nigeria (CBN) has issued further clarification on the recently announced licensing requirements for Bureau de Change (BDC) operators.

According to the apex bank, the updated guidelines, incorporating feedback from earlier public consultations, were officially published on the CBN website on Wednesday, May 22nd, 2024.

Mrs Hakama Sidi Ali, Acting Director of the Corporate Communications Department, revealed that the new guidelines introduce a two-tier licensing system for BDCs, categorized as Tier 1 and Tier 2.

The CBN is now accepting applications for new BDC licenses from interested parties, provided they meet the qualifications outlined in the revised guidelines.

The application and compliance process for existing BDCs will commence on June 3rd, 2024.

Existing BDCs have been granted a six-month grace period to align their operations with the new requirements, ensuring a smooth transition to the updated regulatory framework.

She emphasized the CBN’s commitment to fortifying the BDC sector, aiming to enhance its role and impact in Nigeria’s foreign exchange market.

She assured existing BDCs of a six-month grace period to comply with the new requirements.

According to her, this grace period allows them to adjust their operations to meet the new standards.

The CBN, she noted, remains dedicated to strengthening the BDC sector.

She added that the new guidelines aim to ensure that BDCs play a more significant and positive role in Nigeria’s foreign exchange market.