Nigeria: CBN directs banks to sell Forex to BDCS

*Central Bank of Nigeria, CBN.

*Central Bank of Nigeria, CBN.

24 July 2016, Lagos — The Central Bank of Nigeria (CBN) has directed agent banks to approved international money transfer operators to sell foreign currency accruing from inward money remittances to licenced Bureau De Change operators (BDCs).

The directive is in a circular with reference number, “TED/FEM/ FPC/GEN/01/004, dated July 22, 2016, and posted on its Website”.

The circular by the Acting Director, Trade and Exchange Department, Mr W.D. Gotring, is part of efforts to ensure the stability of the Naira exchange rate.

It also said that the decision was to encourage all critical stakeholders to participate in the foreign exchange market.

The circular said that all international money transfer operators would be required to remit foreign currency to agent banks for disbursement in Naira to beneficiaries.

It stressed that proceeds from the international money transfer sold to the BDC operators should be retailed to end users in compliance with the provisions of anti-money laundering laws.

It also said that the process should be in observance of appropriate Know Your Customer (KYC) principles, including the use of Bank Verification Number (BVN).

The circular said: “Furthermore, authorised dealers and BDCs are required to render returns of the operation daily and monthly to the Director, Trade and Exchange, CBN via e-FASS application, in accordance with extant regulation.

“For the avoidance of doubt, failure by any authorised dealers and BDC operators to render returns as and when due shall attract appropriate sanctions, including withdrawal of dealership”.
*Vanguard

About the Author