CBN bars BDCs from funding imports

In from Ali Smart…

The Central Bank of Nigeria (CBN) has warned that Bureau De Change (BDCs) are not authorised to fund import transactions in any form whatsoever, either by cash or wire transfer.

In a statement issued on Thursday, the apex bank insisted that “authorised dealers are hereby barred from effecting wire transfers from the account of their BDCs’ to customers henceforth.”

Justifying the need for the policy regime, the CBN said it was forced to issue this directive because of “the misconception that has to do with the fact that some importers believe that they can access Bureau De Change (BDCs) segment for funding of those classified items arising from of its circular in respect of import items recently classified as ‘Not Valid for Foreign Exchange’ in any of the segments of the Nigerian foreign exchange market.”

The BDCs, CBN noted, “are only authorised to deal in foreign currency cash and to sell not more than US$5,000.00 to an individual customer and strictly for the following transactions: i) Business Travel/Personal Travel Allowance ii) Monthly mortgage payment iii) School fees abroad iv) Credit card payment v) Utility bills vi) Life insurance premium payment.”

“Any Authorised Dealer that is found to have used funds from the interbank, exports proceeds and bureau de change to consummate these items classified as “Not Valid for Forex” or undertake money wire transfer for a BDC shall be sanctioned appropriately,” the statement added.
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The CBN which disclosed that it has uncovered the unwholesome practice of movements of huge foreign currency cash across Nigerian borders by individuals and corporate bodies without compliance to extant law of declaration to the appropriate authorities, hinted that it is already collaborating with other relevant agencies of government to ensure compliance to the provisions of the law.

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