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Monday, May 16, 2022

CBN to refund licensing charges of recent BDC promoters | The Guardian Nigeria Information

A person exchanges Nigeria’s forex Naira for US {dollars} in Lagos, Nigeria, on April 19, 2021. (Photograph by PIUS UTOMI EKPEI / AFP)

•We’ll develop a nationwide BDC coverage, says ABCON
The Central Financial institution of Nigeria (CBN) has commenced the method of refunding licensing charges and capital deposits to promoters of bureau de change, whose registrations had been being processed earlier than Tuesday’s announcement.

The apex financial institution had, on Tuesday, introduced the suspension of funding of BDCs and registration of recent ones, accusing them of cash laundering and different anti-market actions.

In a round, yesterday, the apex financial institution mentioned it “will start the quick refund of capital deposits and licensing charges (the place relevant) to promoters who’ve pending bureau de change (BDC) licence purposes with the CBN”.

The regulator, thus, referred to as on affected events to file requests for the refund by means of the Director of Monetary Coverage and Regulation Division.

It additionally directed banks to “henceforth cease accepting instruction from prospects to switch the capital deposit of N35 million to the designated CBN account for the aim of making use of for BDC licence”.

In the meantime, the Affiliation of Bureau de Change of Nigeria (ABCON) has damaged silence, assuring that its members nonetheless present international alternate (FX) providers.

President of the affiliation, Dr. Aminu Gwadabe gave the reassurance that the CBN pronouncement doesn’t cease BDCs from offering FX providers, as assured by their working licenses and contained within the working tips.

“BDCs are licensed to offer retail FX providers, together with shopping for from the general public and likewise promoting to end-users for allowable transactions specifically Private Journey Allowance (PTA), Enterprise Journey Allowance (BTA), fee of medical and college charges,” Gwadabe was quoted.

He continued: “Whereas the CBN has stopped greenback sale to BDCs, it has not cancelled their working licenses, or banned them from offering FX providers to members of the general public. At ABCON, we urge our members to see the CBN pronouncement as a wake-up name and alternative to widen their buyer base and deepen their enterprise.

“ABCON has all the time labored with the CBN to make sure correct working of the FX market and according to this precept, we’ll have interaction with the apex financial institution to handle and resolve all the problems that led to the current motion, together with identification and sanctioning of earring BDCs, the place vital.”

He mentioned the affiliation would work with related stakeholders, together with regulation enforcement businesses, “to develop a nationwide BDC coverage with the intention of enhancing the contribution of the BDC subsector to the nation’s economic system”.

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