Monday, July 25, 2016

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)

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