Foreign exchange sellers to Bureau De Change (BDC) who sell foreign exchange for at least $10,000 are required by the Central Bank of Nigeria (CBN) to disclose their foreign exchange sources.
This was said by the apex bank in a revamped regulatory framework it released on Friday, which aims to restrain BDC excesses and reduce market confusion.
The CBN further stated that sellers will have to abide by all foreign exchange laws and regulations in addition to Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards.
The CBN stated that as part of continuing changes to the Nigerian foreign currency market, the recommendations will greatly improve the regulatory environment for the activities of BDCs.
The rules update the authorized activities, license requirements, corporate governance, and AML/CFT provisions for BDCs, according to the apex bank.As per the guidelines, BDCs are allowed to obtain foreign currencies from various sources such as tourists, diaspora returnees, expatriates, residents, and international money transfer operators (IMTOs).
Additionally, expatriates with foreign exchange inflows from work, travel, investment, or their domiciliary accounts may also source foreign currencies from these sources.
The Nigerian Foreign Exchange Market (NFEM), embassies, hotels that are approved buyers of foreign exchange, and any other source that the CBN may designate are among the others.
Customers may transfer foreign currencies to BDCs from their individual domiciliary accounts with Nigerian banks, according to the criteria.
“All digital/transfer purchases of foreign currencies shall be credited to the BDC’s Nigerian domiciliary account,” the statement continued.
“A BDC shall transfer funds to the customer’s Naira account for any digital or transfer purchases of foreign currency. A BDC has the authority to provide a prepaid NGN card to a non-resident client, regardless of their nationality in Nigeria.
“Where such a card is issued, relevant maximum credit and cumulative limits, in line with relevant Know Your Customer requirements, shall apply.
“Payments to customers for cash purchases of foreign currency, the equivalent of above USD500, shall be by transfer to the customer’s Naira bank account.
