BDC operators declare support for Task Force to clampdown on defaulting members

Bureaux De Change (BDC) operators have declared support for the proposed Task Force Committee of the Association of Bureaux De Change Operators of Nigeria (ABCON) to monitor compliance by its members and clampdown defaulters

In a statement made available to Ripples Nigeria on Monday after a meeting of BDC Directors organised by the Association of Bureaux De Change Operators of Nigeria (ABCON) in Lagos, the directors charged the Association to punish any operator involved in street trading of forex.

While observing that the guidelines for BDC operations require that all licensed BDCs operate inside their registered offices, the directors called on the Association to penalise any operator that contravenes the guidelines of the Central Bank of Nigeria (CBN) for the subsector.

Meanwhile, the stakeholders stressed the need for the CBN to increase the sales margin of BDCs, noting that the N2 margin presently allowed by the apex bank is inadequate given the operating cost of BDCs as well as the rising inflationary trend in the country.

Also, they highlighted the need for the CBN to expand the operating scope of BDCs to allow for more business revenue to cover their operating cost.

In his remarks, the President of ABCON, Dr. Aminu Gwadabe, charged the BDC directors to protect the huge money invested in their BDCs by ensuring their staff operates within the approved guidelines of the CBN.

READ ALSO: Bureaux De Change operators blame forex speculators for naira crisis

According to him, this has become imperative to protect the BDC business, especially the weekly dollar sale by the CBN.

Noting that the least investment in any BDC is about N35 million, he called for increased supervision by directors, to detect and forestall any activity that could lead to the loss of such investment.

The ABCON Chairman for South-West Zone, Taiwo Ebenezer, charged directors to be involved in the day-to-day activities of their BDCs and to relate regularly with their staff.

Among other things, he noted that BDC directors must know the sources of funds paid into their corporate accounts, while also ensuring weekly operational reports from their staff.

On his part, ABCON Vice President, Azubuike Igbokwe listed unauthorised transactions for BDcs to include, funds transfer, donations to political parties, funding of importation, and funding of terrorism activities.

He said the penalty for unauthorised transactions include N5 million fine, exclusion from forex bidding, or revocation of the operating licence, he charged the directors to always validate the BVN of their customers to ensure their identity and activities as a way of ensuring their BDCs are not unconsciously or indirectly used for any of the unauthorised transactions.

By Victor Uzoho

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