Wednesday, April 17, 2024
HomeBanking & FinanceCBN validates operating licences for 5,687 BDCs

CBN validates operating licences for 5,687 BDCs

The Central Bank of Nigeria (CBN) Friday validated operating licenses for 5,687 Bureaux De Change (BDCs) in the country.

The long list of approved BDCs released by the apex regulator include- 11 HR BDC Ltd, 10-20 Times BDC Ltd, 171 BDC Ltd, 1817 BDC Ltd, 2017 BDC Ltd, 313 BDC Ltd.  Others are Zulli BDC Ltd, Zulu BDC Ltd, Zuma Rock Global BDC Ltd, 4WaysCash BDC Ltd, 360 BDC Ltd, to mention but a few. 

According to CBN regulatory guidelines for BDCs, every BDC in Nigeria shall deal in bank notes and coins, plastic cards and such other businesses as the CBN may approve from time to time. 

The apex bank said the foreign currencies dealt in by a BDC shall be derived from private sources and such other sources which may include the CBN window as determined by the CBN from time to time for the purpose of funding Business Travel Allowance (BTA) and Personal Travel Allowance (PTA). 

Also, any person/individual wishing to sell foreign currency above $10,000 or its equivalent to a BDC shall be required to disclose the source. 

According to the CBN, every licenced BDC shall conspicuously display its buying and selling rates subject to a maximum spread of 3.5 per cent or as the CBN may determine from time to time. 

“Every Bureau De Change shall keep proper registers and other records of all its transactions for transparency and compliance with Anti Money Laundering Provisions, CBN Guidelines, Circulars or directives. Furthermore, a machine list or receipts showing how the amount sold to or bought from a customer was arrived at, should be issued by the Bureau De Change,” it said. 

The CBN also directed that all sales or purchases of foreign exchange shall be properly documented and recorded as may be required by the CBN. Also, such documents should be arranged sequentially and be made available to CBN and other regulatory authorities on demand.

It said purchases of foreign currencies by intending travelers shall be supported by their Bank Verification Number (BVN), validly issued and genuine travelling documents (ticket, passport, visa) and the sales receipt duly signed by the customer. The amount and date shall be endorsed on the passport. 

“Every BDC shall be required to open both domiciliary and Naira accounts with Authorized dealers in Nigeria and inform the CBN accordingly. The accounts shall be used solely for day to day operations,” the apex bank stated. 

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