Abuja, May 23, 2023 – The Central Bank of Nigeria (CBN) has directed all existing Bureau De Change Operators to re-apply for new licence in their preferred category.
The apex bank announced this through a circular on Wednesday in a circular signed by Haruna Mustafa, its Director of Financial Policy and Regulation Department.
It said the adjustments were aimed at streamlining BDC operations and enhance financial accessibility.
CBN said the BDCs were to adhere to corporate governance requirements and anti-money laundering, counter-terrorism financing, and counter-proliferation financing provisions.
The new guidelines, which are an update on the draft that was exposed earlier in the year, are to go into effect on June 3.
CBN has set up two new categories – Tier 1 and Tier 2 BDC licences
According to the new guidelines, A Tier 1 BDC:
May operate in any State of the Federation and the Federal Capital Territory,
May establish branches and appoint franchisees in any state and FCT, subject to the written approval of the CBN.
Shall maintain a minimum distance of one kilometre between its branches, its branch and a franchisee, and between its franchisees.
Shall exercise oversight on its franchisees. All franchisees shall adopt their franchisor’s name, logo, branding, technology platform and regulatory rendition requirements.
2 Classified as Confidential: e. Shall comply with the franchising standards prescribed in these guidelines.
Tier 2 BDC licence allows the operator to operate from only one state of the federation or the FCT, and it is allowed to establish five branches in a state of operation, subject to the written approval of the CBN.
It is also required to maintain a minimum distance of one kilometre between its branches and is not allowed to appoint franchisees.
The BDCs (existing or new) would also be required to meet the capital requirements for their license category within six months. (GBN)
