The Central Bank of Nigeria (CBN) has released new guidelines to regulate the activities of Bureau de Change (BDC) operators in the country, introducing significant changes to capital requirements and operational restrictions. 

These guidelines, announced in a circular on Wednesday, are set to take effect from June 3, 2024.

The CBN has established a minimum capital base of N2 billion for Tier-1 BDCs and N500 million for Tier-2 BDCs. Notably, the mandatory caution deposit of N200 million for Tier-1 BDC license holders has been removed, as well as the N50 million caution deposit for Tier-2 license holders.

In the circular addressed to BDCs, Haruna Mustafa, the Director of Financial Policy and Regulation at CBN, outlined the new regulatory framework and compliance deadlines. Existing BDC operators are required to reapply for new licenses and meet the revised capital requirements within six months from the implementation date, June 3, 2024.

Key restrictions have been imposed on BDC activities to curb illicit financial operations and enhance transparency. 

The new guidelines ban BDC operators from engaging in street trading, international outward transfers, financing of political activities, and dealing in gold, other precious metals, or crypto assets. Additionally, BDCs are prohibited from transacting in any virtual assets.

The CBN also mandated that all transactions conducted by BDCs exceeding USD500 must be processed through digital channels, aiming to improve traceability and reduce the risk of money laundering and other financial crimes.

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