In a significant move, the Central Bank of Nigeria (CBN) has taken decisive action by revoking the licenses of 4,173 Bureau De Change (BDC) operators. The announcement, made by CBN spokesperson Hakama Sidi Ali, comes as the regulatory body aims to enforce compliance with established guidelines and regulations within the financial sector.
The primary reason cited for the revocation was the failure of the affected institutions to adhere to regulations, notably in the timely payment of necessary fees, including license renewal. According to the statement, these BDCs did not fulfill their financial obligations within the stipulated period, as outlined in the regulatory guidelines.
Another significant infraction highlighted was the non-rendition of returns in line with the prescribed guidelines. This failure to provide essential financial information raises concerns about transparency and accountability within the operations of these BDCs.
The CBN also accused the affected operators of non-compliance with various guidelines, directives, and circulars issued by the regulatory body. Specifically, these infractions pertained to Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing regulations.
Hakama Sidi Ali emphasized that the CBN is actively revising the regulatory and supervisory guidelines for BDC operations in Nigeria. The spokesperson asserted that compliance with these new requirements will be mandatory for all stakeholders in the sector once the revised guidelines come into effect.
This move by the CBN signals a commitment to maintaining a robust and transparent financial system. By holding BDCs accountable for adherence to regulations, the CBN aims to strengthen the sector’s integrity, safeguard against financial malpractices, and protect the interests of both investors and the general public.
As the affected BDCs grapple with the consequences of license revocation, the financial community will be closely monitoring the implementation of the revised regulatory and supervisory guidelines. The CBN’s proactive measures underscore the importance of strict adherence to financial regulations in fostering a stable and resilient economic environment.
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