In a move to regulate and streamline currency exchange operations, the Central Bank of Nigeria (CBN) has validated operating licenses for a staggering 5,687 Bureaux De Change (BDCs) across the country.
Bureaux de change are businesses that facilitate the exchange of one currency for another, serving an essential role in the foreign exchange market.
The comprehensive list of ‘Approved BDCs,’ released by the apex regulator, comprises various entities such as 11 HR BDC Ltd, 10-20 Times BDC Ltd, 171 BDC Ltd, 1817 BDC Ltd, 2017 BDC Ltd, 313 BDC Ltd, and many more, including Zulli BDC Ltd, Zulu BDC Ltd, Zuma Rock Global BDC Ltd, 4WaysCash BDC Ltd, and 360 BDC Ltd, among others.
According to CBN’s regulatory guidelines for BDCs, each licensed BDC in Nigeria shall be authorized to deal in banknotes and coins, plastic cards, and other businesses as approved by the CBN from time to time.
The apex bank also stipulated that the foreign currencies dealt in by a BDC must be derived from private sources or other sources, including the CBN window, to fund Business Travel Allowance (BTA) and Personal Travel Allowance (PTA).
In a bid to ensure transparency and compliance with Anti Money Laundering Provisions and CBN guidelines, every BDC is mandated to conspicuously display its buying and selling rates, with a maximum spread of 3.5 percent or as determined by the CBN from time to time.
Furthermore, CBN’s directives require each BDC to maintain proper registers and records of all transactions, including a machine list or receipts displaying the amount sold to or bought from a customer. These documents should be arranged sequentially and made available to the CBN and other regulatory authorities upon demand.
The CBN also emphasized that all sales or purchases of foreign exchange must be appropriately documented and recorded as required.
It further specified that purchases of foreign currencies by intending travelers shall be supported by their Bank Verification Number (BVN) and valid and genuine traveling documents, including tickets, passports, and visas.
The sales receipt duly signed by the customer shall be endorsed on the passport, indicating the amount and date.
Additionally, as part of the new guidelines, every BDC must open both domiciliary and Naira accounts with authorized dealers in Nigeria and inform the CBN accordingly. These accounts are to be solely used for day-to-day operations.
The CBN’s proactive measures to regulate the Bureaux De Change aim to enhance transparency, strengthen compliance, and foster an efficient foreign exchange market in Nigeria.
