The Central Bank of Nigeria (CBN) has directed that foreign currency realised from inward money remittances should be sold to licensed Bureau De Change (BDC) operators.
CBN gave the directive via a circular with reference number, “TED/FEM/ FPC/GEN/01/004, dated 22nd July 2016 and posted on its Website.
The circular, which was signed by the Acting Director, Trade and Exchange Department, Mr W.D. Gotring, is part of efforts to ensure the stability of the Naira exchange rate.
The decision was to encourage all critical stakeholders to participate in the foreign exchange market, CBN said.
According to the circular, all international money transfer operators are now required to remit foreign currency to agent banks for disbursement in Naira to beneficiaries.
It was stressed in the document that proceeds from the international money transfer sold to the BDC operators should be retailed to end users in compliance with the provisions of anti-money laundering laws.
It also said that the process should be in observance of appropriate Know Your Customer (KYC) principles, including the use of Bank Verification Number (BVN).
“Furthermore, authorised dealers and BDCs are required to render returns of the operation daily and monthly to the Director, Trade and Exchange, CBN via e-FASS application, in accordance with extant regulation,” the document indicated.
“For the avoidance of doubt, failure by any authorised dealers and BDC operators to render returns as and when due shall attract appropriate sanctions, including withdrawal of dealership.’’
