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The Central Financial institution of Nigeria (CBN) has directed Bureau De Change (BDC) operators to re-apply for brand new licenses
This was revealed on Wednesday in a revised guideline for BDC operations, signed by Haruna Mustafa, director of the Monetary Coverage and Regulation Division on the financial institution.
The regulator additionally directed that BDCs meet the minimal capital necessities for the license class utilized for inside six months from the efficient date of the rules.
“All present BDCs shall: Re-apply for a brand new license in keeping with any of the Tiers or license class of their alternative as offered within the Pointers,” it stated.
The brand new regulatory necessities mandate that Tier-1 BDCs have a minimal capital base of N2 billion, whereas Tier-2 BDCs will need to have a minimal of N500 million.
Moreover, the appliance payment for a Tier-1 license is ready at N1 million and N250 thousand for a Tier-2 license. Licensing charges are N5 million for Tier-1 and N2 million for Tier-2 BDCs.
The financial institution has additionally instructed BDCs to adjust to these necessities inside the subsequent six months.
The brand new pointers allow Tier-1 BDCs to function throughout all 36 states and the FCT and to open franchises nationwide with CBN approval.
The up to date rules additionally prohibit BDCs from participating in futures, choices, and by-product buying and selling, performing outward worldwide transfers, receiving worldwide inward transfers, and dealing in crypto property or with entities that deal with crypto property, amongst different restrictions.
The brand new pointers incorporate modifications following the financial institution’s launch of the Draft Revised Regulatory and Supervisory Pointers for Bureau De Change Operations in Nigeria in February.
The brand new pointers remove the obligatory warning deposits of N200 million for Tier-1 and N50 million for Tier-2 license holders. Additionally, the CBN has eliminated the non-refundable annual license renewal charges of N5 million for Tier-1 and N1 million for Tier-2 BDCs.
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