Regulatory Alerts2016-08-09 | TED/FEM/FPC/GEN/01/006Sales of Forex To BDCs By IMTSO
The Central Bank of Nigeria's Trade and Exchange Department has issued updated guidelines for authorized dealers and bureau de change operators regarding the sales and utilization of foreign currency proceeds from international money transfers. Authorized dealers may now sell up to $30,000 per week to licensed bureau de change operators, who can only procure this amount from their chosen bank. The selling rate by authorized dealers to bureau de change operators should be the buying rate plus a margin not exceeding 1.5%. Bureau de change operators must disburse funds for eligible purposes such as business travel allowance, overseas school fees, and medical fees, with a maximum transaction of $5,000. Both authorized dealers and bureau de change operators are required to maintain records and render weekly returns on sales, purchases, and utilization, while strictly adhering to Anti-Money Laundering Laws and observing appropriate KYC principles. Any violations or diversions of funds may result in the suspension of licenses.