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CBN targets N2Billion and N500Million for Bureau De Change Licenses | Read full details!

1 month ago   MARKET NEWS   Lagos   239 views Reference: 309

Location: Lagos

The Central Bank of Nigeria (CBN) wants to change the rules for Bureau de Change (BDC) operators in the country. They are proposing new regulations that would make BDCs have more money to operate. For Tier 1 BDCs, they will need at least N2 billion, and for Tier 2 BDCs, they will need at least N500 million. Before, the requirement was N35 million for a general license.

The CBN made these changes in the Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria. These guidelines also cover what BDCs can do, the rules for getting a license, how they should be managed, and rules to prevent money laundering and terrorism financing. The CBN is also adding new rules about keeping records and reporting.

If these new rules are approved, they will start on a date decided by the CBN. Tier 1 BDCs can operate all over the country, open branches, and have franchisees with the CBN's approval. Tier 2 BDCs can only operate in one state or the FCT, have up to three locations, and are not allowed to have franchisees.

To apply for a license, BDCs need to pay N250,000, and if they get the license, they have to pay N2 million. The CBN says that BDCs need to have the required minimum capital, and they may also need to add more money if the CBN asks. BDC licenses need to be renewed every year, and the fee is N5 million for Tier 1 and N1 million for Tier 2. This renewal depends on following the rules and paying the fee.