CBN restricts BDCs to one bank for weekly purchase of $25,000

The Central Bank of Nigeria (CBN) has issued new guidelines directing Bureau de Change (BDC) operators to purchase foreign exchange from a single authorised dealer per week.

The CBN also directed the BDCs to comply with Know Your Customer (KYC) measures.

The apex bank, in a circular signed by the Acting Director of Trade and Exchange Department, W. J. Kanya, on Wednesday, February 5, 2025, mandated a weekly purchase cap of $25,000 per BDC from authorised dealers.

It stated: “A BDC shall approach its preferred Authorised Dealer Bank (ADB) and can only procure the said amount from only that bank of its choice in a week. Any breach of this condition will attract appropriate sanction.

“The selling rate by the Authorised Dealers to BDCs shall be the prevailing day rate at NFEM window.”

The CBN permitted forex cash purchased by BDCs from authorised dealer banks to be sold to end-users at a rate not exceeding one per cent margin above the buying rate.

The apex bank said the one per cent margin shall be applicable to all funds to be retailed by BDCs regardless of sources of fund.

CBN extends forex sale period to BDCs

It also mandated authorised dealer banks to render weekly returns on sales to BDCs on a specified format attached to the guidelines to be addressed to the apex bank.

The CBN 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).

The CBN 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.

It insisted that in all cases, the maximum disbursement per transaction should not exceed $5,000 quarterly.

The apex bank added: “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.”

The CBN noted that authorised dealers and BDCs who divert funds or violate the provision of the guidelines would face sanctions including, suspension of dealership license.

The Star