CBN Introduces Stricter Regulations for Foreign Exchange Sellers to BDCs

CBN Introduces Stricter Regulations for Foreign Exchange Sellers to BDCs

February 24, 2024 0 By Fasholu Gabriel Oluwatobi

In a bid to enhance transparency and stability in the foreign exchange market, the Central Bank of Nigeria (CBN) has announced new regulations requiring foreign exchange sellers to Bureau De Change (BDC) to declare the equivalent of $10,000 and above from their forex sources.

The CBN unveiled these measures as part of a revised regulatory framework aimed at curbing the excesses of BDCs and addressing uncertainty in the forex market. Published on Friday, the regulatory framework mandates sellers to comply with Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regulations, as well as foreign exchange laws and regulations.

This move signifies a significant step in the ongoing reforms of the Nigerian foreign exchange market, according to the apex bank. The guidelines outlined in the framework seek to bolster the regulatory framework governing the operations of BDCs.

Among the revisions introduced, the guidelines cover permissible activities, licensing requirements, corporate governance, and AML/CFT provisions for BDCs. The CBN aims to strengthen oversight and ensure adherence to best practices within the sector.

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