Regulatory Alerts2014-01-24 | TED/FEM/FPC/GEN/01/004Developments in the Foreign Exchange Market: Foreign Exchange sales to Bureau De Change (BDC) Operators by Banks
The Nigerian Trade and Exchange Department has removed the $250,000 weekly limit for forex sales to Bureau De Change (BDC) operators by banks. This decision aims to improve liquidity in the foreign exchange market. Banks must still adhere to anti-money laundering/financial terrorism laws and regulations when selling forex to BDCs and end-users, as well as submit weekly reports on their transactions. Failure to comply with these requirements may result in revocation of operating licenses.
TRADE AND EXCHANGE DEPARTMENT 09-61637804 09-61637802 E-mail address:ted@cbn.gov.ng Our Ref: TED/FEM/FPC/GEN/01/004 January 24, 2014 To: ALL AUTHORISED DEALERS, BUREAU DE CHANGE OPERATORS AND THE GENERAL PUBLIC DEVELOPMENTS IN THE FOREIGN EXCHANGE MARKET: FOREIGN EXCHANGE SALES TO BUREAU DE CHANGE (BDC) OPERATORS BY BANKS Further to the Circular ref: TED/FEM/GEN/FPC/01/009 dated September 26, 2013 on the above subject, we write to inform all Authorized Dealers and the general public that the provisions of paragraph (1) of the circular under reference has been reviewed with immediate effect.
Consequently, the limit of USD250,000.00 as the maximum weekly forex sales to a BDC is hereby removed in order to shore up liquidity in that segment of the foreign exchange market. Authorized Dealers are therefore free to sell forex to BDCs subject to compliance with the provisions of extant AML/FT laws and regulations in the disbursement of forex.
Furthermore all transactions between Authorised Dealers and BDCs as well as the latter and end-users must be supported with appropriate documentation.
In addition, Authorized Dealers and Bureau De Change Operators are to continue to render weekly returns on their transactions to the CBN and other relevant regulatory agencies, failing which appropriate sanctions, including revocation of operating license shall be imposed.
BATARI MUSA DIRECTOR TRADE & EXCHANGE DEPARTMENT