The Central Bank of Nigeria has mandated all existing Bureau De Change Operators (BDC) to re-apply for new licenses in their preferred category.
The banking sector regulator made this known in a circular by the Director of the Financial Policy and Regulation Department, Haruna Mustafa.
The CBN said the adjustments are aimed to streamline BDC operations and enhance financial accessibility and will go into effect on June 3.
It said BDCs are expected to adhere to corporate governance requirements and anti-money laundering, counter-terrorism financing, and counter-proliferation financing provisions.
The CBN, however, removed the mandatory caution deposit, which the industry players had kicked against, but set up two new categories; Tier 1 and Tier 2 BDC licences.
According to the new guidelines, A Tier 1 BDC: a. May operate in any State of the Federation and the Federal Capital Territory, b. May establish branches and appoint franchisees in any state and FCT, subject to the written approval of the CBN. c. Shall maintain a minimum distance of one kilometre between its branches, its branch and a franchisee, and between its franchisees, among others.
A tier 2 BDC Licence on the other hand allows the operator to operate from only one state of the federation or the FCT, and is allowed to establish five branches in a state of operation, subject to the written approval of the CBN.
The BDCs (existing or new) would also be required to meet the capital requirements for their license category within six months.
