Regulatory Violations Prompt CBN to Revoke Licences
In a significant move, the Central Bank of Nigeria (CBN) has taken the drastic step of revoking the licences of 4,173 Bureaux De Change (BDC) operators, citing their failure to adhere to regulatory provisions. The announcement was made through a statement released on Thursday by Sidi Ali Hakama, the Acting Director of Corporate Communications at the apex bank.
Failure to Comply with Guidelines and Regulations
The CBN clarified that the affected BDC operators faced licence revocation due to their non-compliance with various regulatory requirements. This encompassed the failure to pay necessary fees, including license renewal fees, within the stipulated period. Additionally, the operators were found lacking in their adherence to guidelines, directives, and circulars issued by the CBN, with a specific emphasis on Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations.
Exercise of Regulatory Authority under BOFIA 2020 and Operational Guidelines
The apex bank asserted that it executed the licence revocation in accordance with the powers conferred upon it by the Bank and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change 2015. The list of the affected BDC operators has been made available on the CBN’s official website.
Ongoing Revisions and Mandatory Compliance
Furthermore, the CBN disclosed its intent to revise the regulatory and supervisory guidelines for Bureau de Change operations in Nigeria. The institution emphasized that compliance with the new requirements would be mandatory for all stakeholders within the sector. The move signifies the CBN’s commitment to upholding the integrity of financial systems and ensuring adherence to established regulations in the country’s financial landscape.