Nigeria’s Central Bank and Corporate Affairs Commission Take Action Against Non-Compliant Bureau De Change Operators
In a move to maintain regulatory standards, the Central Bank of Nigeria (CBN) and the Corporate Affairs Commission (CAC) have taken steps to address non-compliance issues among Bureau De Change (BDC) operators in the country. The CBN revoked the licenses of 4,173 BDC operators in February for failing to meet regulatory guidelines, and now the CAC is set to cancel the certificates of incorporation of these same companies.
According to a notice published on the CAC’s website, the affected companies have three months to change their names and objects to avoid cancellation of their certificates of incorporation and dissolution. The notice states that it is unlawful for a company whose certificate has been deemed dissolved to continue operating.
The CBN revoked the licenses of the BDC operators due to non-compliance with regulatory standards, including non-payment of all necessary fees within the stipulated period, failure to render returns in line with guidelines, and non-compliance with guidelines, directives, and circulars, particularly in areas such as Anti-Money Laundering, Countering the Financing of Terrorism, and Counter-Proliferation Financing.
The CBN has since released fresh regulations and guidelines for BDC operations in Nigeria, which include new categorizations with different capital bases. These regulations aim to ensure that BDC operators adhere to strict standards and maintain transparency in their operations.
The actions taken by the CBN and CAC are aimed at maintaining financial stability and preventing illicit activities in the country’s foreign exchange market. The move is also expected to promote a more level playing field for compliant BDC operators and enhance the overall reputation of the industry.
The affected companies have until the end of the three-month period to take the necessary steps to avoid cancellation of their certificates of incorporation. It remains to be seen how this development will impact the operations of BDCs in Nigeria and the broader financial sector.
