CBN directs banks to sell forex to BDCs

The Central Bank of Nigeria (CBN) has directed agent banks to approve international money transfer operators to sell foreign currency ac­cruing from inward money remittances to licenced Bu­reau De Change operators (BDCs).
The directive was con­tained in a circular with ref­erence number - TED/FEM/ FPC/GEN/01/004 - dated July 22, 2016 and posted on CBN’s website.
The circular issued 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.

It also said that the deci­sion was to encourage all critical stakeholders to par­ticipate in the foreign ex­change market.
The circular said that all international money trans­fer operators would be re­quired to remit foreign cur­rency to agent banks for disbursement in Naira to beneficiaries.
The document, according to the News Agency of Ni­geria, stressed 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).
The circular said: “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.
“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’’. (NAN)