The Central Bank of Nigeria, CBN, has issued new guidelines restricting Bureau de Change, operators, from purchasing foreign exchange from a single authorised dealer per week.
CBN also directed the BDCs to comply with Know Your Customer measures.
The apex bank, made this known in a circular signed by Acting Director, Trade and Exchange Department, W. J. Kanya, as he mandated a weekly purchase cap of 25,000 dollars per BDC from authorised dealers.
CBN also permitted FX cash purchased by BDCs from authorised dealer banks to be sold to end-users at a rate not exceeding one percent margin above the buying rate, stressing that the margin shall be applicable to all funds retailed by BDCs regardless of sources of fund.
It however mandated authorised dealer banks to render weekly returns on sales to BDCs on a specified format attached to the guidelines addressed to the apex bank.
CBN further it urged all BDCs to render daily returns on FX purchases from authorised dealer banks and other sources as well as sales on the Financial Institutions Forex Reporting System (FIFX).
“Records shall be maintained for all transactions by the BDCs showing the BVN of the end-user, including endorsement of the amount disbursed in the International Passport of the beneficiary.
“It is to be noted that Authorised Dealer Banks and BDC operators shall ensure strict compliance to the provisions of Anti-Money Laundering Laws and observance of appropriate KYC principles in the handling of these transactions,” it stated.
CBN added that authorised dealer and BDC that divert funds or violate the provision of the guidelines would face sanctions including, suspension of its dealership license.
It further directed that funds purchased by BDCs be disbursed for specific transactions including Business Travel Allowance/Personal Travel Allowance; Overseas School fees and Overseas Medical fees.
