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CBN Tweaks Bureau De Change Rules, Tier-1 Capital Now N2bn

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The Central Bank of Nigeria (CBN) has issued new regulatory guidelines for bureau de change operators.

Key changes to the guidelines include the removal of the mandatory caution deposit of N200 million for tier-1 licence holders and N50 million for tier-2 licence holders.

Additionally, the CBN has directed all existing BDC operators to reapply for new operational licences by June 3, 2024, to continue participating in the forex market.

The new requirements set a minimum capital of N2 billion for tier-1 and N500 million for tier-2 operators.

The revised guidelines, detailed in a circular issued on Wednesday by Haruna Mustafa, CBN’s Director of Financial Policy and Regulation Department, are part of a broader effort to reform the BDC sub-sector and enhance its role in Nigeria’s foreign exchange market.

These guidelines introduce new licensing requirements, redefine permissible activities, and revise financial, corporate governance, and AML/CFT/CPF provisions for BDCs.

Under the new regulations, all existing BDCs must reapply for a new licence according to their chosen tier and meet the respective minimum capital requirements within six months from the effective date of the guidelines.

New applicants for BDC licences must also meet the specified conditions for their chosen tier.

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