CBN Shifts Ground, Gives BDCs 16 Extra Days to Raise Capital

The Central Bank of Nigeria (CBN) on Monday announced the extension of compliance date for Bureaux De Change to raise their capital base from N10 million to N35 million to July 31, 2014 from the initial July 15.
According to a circular to all Bureaux De Change dated July 7, 2014, the apex bank said based on representations from stakeholders, the deadline for compliance with the new licensing requirements had been extended to July 31, 2014.
The circular signed by Kevin N. Amugo, Director, Financial Policy & Regulation Department also confirmed that interest will be paid on the mandatory cautionary deposit of N35 million, based on banking industry savings account rate; the Central Bank of Nigeria, on the expiration of the deadline of July 31, 2014, will cease to fund any Bureau De Change that fails to comply with the new requirements;  and only Bureaux De Change that meet the new requirements will qualify to be engaged as Agent by the licensed International Money Transfer Operators for inward and outward money transfer business in Nigeria.
Meanwhile, it said all BDCs that paid the mandatory caution deposit of N500,000.00 to the CBN prior to 2009, should apply for their refund.

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