CBN Directs Banks To Sell Remittances Via Money Transfer Firms To BDCs

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The Central Bank of Nigeria (CBN) has directed commercial banks that are agents of approved international money transfer firms including Western Union and Moneygram to henceforth sell all foreign currencies obtained via inward money remittances to licensed Bureaux De Change (BDC) operators. In a circular posted on its website yesterday, entitled, “Sales of foreign currency proceeds of International money transfers to Bureaux De Change Operators” signed by the Acting Director, Trade and Exchange Department, W.D Gotring, the apex bank said the move was to ensure stability of the exchange rate and to encourage participation of all critical stakeholders in the forex market.

The CBN stressed that all international money transfer operators are required to remit foreign currency to the agent bank for disbursement in naira to beneficiaries while the foreign currency proceeds will be sold to the BDCs. According to the regulator, “The foreign currency proceeds of international money transfers sold to BDC operators shall be retailed to end users in compliance with the provisions of Antimoney Laundering Laws and observance of appropriate Know-Your-Customer (KYC) principles, including the use of BVNs.”

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It further directed banks and BDC operators to render returns on their operations daily and monthly in accordance with the relevant regulations, warning that, “failure by any Authorised Dealer and/or BDC to render returns as and when due shall attract appropriate sanction, including withdrawal of dealership license.”

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