CBN moves to deepen transparency in BDCs operations

Central Bank of Nigeria, CBN.

Central Bank of Nigeria, CBN.

19 July 2015, Abuja — The Central Bank of Nigeria (CBN) has mandated all licenced Bureaux De Change (BDC) operators in the country to provide the Bank Verification Number (BVN) of their customers for all transactions with effect from August 1, 2015.

It further directed the BDCs to provide the BVN of all their directors before August 15, 2015 as failure may affect their continued participation in the foreign exchange market.

The apex bank in a circular to all licenced BDCs on Thursday also directed that information on all transactions by customers be included in the BDCs’ returns to the CBN.

It added that for corporate customers, the BVN of a director or an authorised signatory of the entity must be provided.

The CBN said the move was to ensure greater transparency in the transactions of licensed BDCs in the country.

The circular, which was signed by the CBN Director, Financial Policy and Regulation Department, further warned that any BDC that failed to provide the required information in its returns or provide a wrong BVN would be penalised by paying a fine of N1 million at the first instance while other subsequent infractions may lead to the revocation of the operating license of the BDC.

However, to ensure a hitch- free implementation of the latest directive, the list of all licenced BDCs would be provided by the CBN to the Nigerian Interbank Settlement System (NIBBS) to enable the company provide the necessary hardware token that would be used by the BDC in accessing the NIBBS website.

The statement further said the NIBBS had been directed to make a portal available on its website to facilitate access for the confirmation/validation of the BVN number of the BDC customers.

According to the CBN, this is to ensure that the correct BVN is recorded by the BDC and included in the returns to the apex bank adding that a token transaction fee of N100 would be paid for each access on the portal.

The NIBBS would also provide the necessary training manual for an easy to use operation of the system.
*James Emejo – David

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