The Central Financial institution of Nigeria (CBN) on Friday mentioned it’s contemplating growing the minimal capital necessities for Bureau De Change (BDC) operators to N2 billion for Tier 1 licenses whereas for Tier 2 licenses it will be N500 million.
The CBN made this announcement by means of a draft titled “REVISED REGULATORY AND SUPERVISORY GUIDELINES FOR BUREAU DE CHANGE OPERATIONS IN NIGERIA”.
The brand new proposed minimal share capital for Bureau De Change operators is large because it was N35 million for a normal license.
“The up to date rules embody quite a few adjustments to the rules for BDC actions inside the nation. As soon as authorized, these up to date pointers will come into impact on a date to be decided by the CBN,” the draft mentioned.
“Tier 1 operators should keep a minimal share capital of N2 billion and in addition submit a compulsory warning deposit of N200 million.
Olayemi Cardoso, Governor of the Central Financial institution of Nigeria (CBN).
“The applying price is N1 million whereas the license price is N5 million.”
In Tier 2, the apex financial institution mentioned operators should maintain a minimal share capital of N500 million and keep a compulsory cautionary deposit of N50 million.
In accordance with the draft, the applying price is N250,000 whereas the license price is N2 million.
The apex financial institution additionally said within the draft that the desired minimal capital requirement for BDCs, along with any further capital injections, must be confirmed by the CBN.
The draft additionally famous {that a} Tier 1 BDC is permitted to function on a nationwide foundation, open branches and appoint franchisees, topic to approval by the CBN.
“A Tier 1 BDC (which is the franchisor) will train oversight over its franchisees,” the report mentioned.
“All franchisees should undertake their franchisor's identify, model, know-how platform and supply necessities.
“A Tier 2 BDC could solely function in a single state or the FCT. It could have a most of three areas: one head workplace and two branches, topic to approval by the CBN. It’s not permitted to nominate franchisees.”
In its operations, a BDC should confirm buyer id, keep transaction information, connect with CBN techniques, clearly show charges, and so on.
On supervision, the CBN says specified statutory returns have to be made, information have to be obtainable for inspection and pointers have to be adhered to.
