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CBN Publishes New Guidelines for Bureau De Change Operators

DOMICILIARY ACCOUNTS

Bureau De Change (BDC) operators across the country have urged the Central Bank of Nigeria to extend the deadline of the new policy which stipulates that BDC must take the Bank Verification Number (BVN) of all its walk-in customers before any transaction can be done. Bureau De Change (BDC) operators across the country have urged the Central Bank of Nigeria to extend the deadline of the new policy which stipulates that BDC must take the Bank Verification Number (BVN) of all its walk-in customers before any transaction can be done.

The Central Bank of Nigeria has released a new set of operational guidelines for Bureaux De Change operators in Nigeria. The guidelines set out to regulate the industry that has for years been seen to be a conduit of round tripping and illegal sale of foreign currency in Nigeria as far as the black market is concerned.

The guidelines which can be found here contained several requirements among which was what the composition of the Board of a BDC should be. According to clause 5.14, 5.21 and 5.22 of the guidelines, Management staff and other senior officers of the BDC shall possess the following;

For Managing Director

The qualifications and experiences of the Managing Director/CEO shall be first degree or its equivalent in any discipline with three (3) years post-graduation experience.

Other Management Staff

The minimum qualifications and experience shall be first degree or its equivalent in any discipline with two (2) years post-graduation experience.

The implication of this move suggests that the CBN is looking to limit the management of the BDC to graduates of a tertiary institution. Analyst are however quick to point out that most BDC operators were founded by people who did not necessarily have academic qualifications especially at the tertiary level and yet have been able to successfully run the business for decades.

See attached the full circular which takes effect from Jan. 1, 2016:

[embeddoc url=”http://www.financialwatchngr.com/wp-content/uploads/2015/12/Revised-BDC-Circular-and-Guidelines-corrected-final-2015.pdf” viewer=”google”]

This post was last modified on December 19, 2015 5:57 AM

Categories: BANKING
Haruna Magaji: Haruna Magaji is a journalist, foreign policy expert and closet musician. He is a graduate of ABU Zaria and a member of the Nigerian union of journalists. JSA, as he is fondly called, resides in Suleja, Abuja. email him at - harunamagaji@financialwatchngr.com
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