The Central Bank of Nigeria (CBN) has launched a digital foreign exchange transaction tracker and tighten operational rules for Bureau de Change (BDC) operators purchasing dollars from authorised dealer banks.
The new framework, contained in a circular dated Wednesday, July 15 and signed by the director of the Trade and Exchange Department, Aderinola Shonekan, takes immediate effect.
According to the CBN, the guidelines implement its Tuesday, February 10, directive granting licensed BDCs access to the Nigerian Foreign Exchange Market (NFEM) through authorised dealer banks.
As part of the reforms, the apex bank launched the FX BDC Purchase Tracker (FXBT), a centralised electronic platform through which licensed BDCs will submit requests to purchase foreign exchange from banks.
The CBN said the platform is designed to improve transparency, efficiency, market liquidity and orderly participation in the retail foreign exchange market.
Under the new rules, only BDCs with valid licences issued by the CBN will be eligible to access the official foreign exchange market. Operators with suspended or restricted licences, or those under regulatory sanctions, will remain ineligible until such sanctions are lifted.
The apex bank also directed authorised dealer banks to carry out comprehensive Know Your Customer (KYC) and Customer Due Diligence (CDD) checks before processing any foreign exchange transaction with a BDC.
Banks are required to obtain and retain documents, including licence certificates, Corporate Affairs Commission (CAC) registration documents, Tax Identification Numbers (TIN), beneficial ownership details and the identities of principal officers. Enhanced due diligence will apply to higher-risk operators.
The CBN warned that no foreign exchange should be disbursed to any BDC that fails to meet the required compliance standards.
Under the framework, BDCs may submit multiple purchase requests each week through the FXBT portal, subject to the existing weekly purchase limit of $150,000.
The apex bank prohibited banks from imposing exclusivity agreements, referral fees or other conditions that restrict BDCs from choosing their preferred authorised dealer bank.
It also directed banks to acknowledge purchase requests within two business hours. Approved requests must be confirmed through the portal, while rejected applications must state specific reasons, including incomplete documentation, exhausted purchase limits or unresolved compliance issues.
The CBN further prohibited third-party transactions, stating that foreign exchange purchased under the framework must be credited only to the BDC’s registered settlement account.
In addition, the regulator directed BDCs to return any unused foreign exchange to the market within 24 hours after the expiry of the utilisation period.
Failure to comply could attract sanctions, including forfeiture of the unused funds and suspension from the official foreign exchange market.
The guidelines also require BDCs to file weekly electronic returns detailing foreign exchange purchases, sales, settlement methods and unused balances.
The apex bank warned that violations of the framework could attract monetary fines, suspension of access to the NFEM, withdrawal of BDC licences, revocation of authorised dealer status for banks found complicit, and possible referral to law enforcement agencies where criminal conduct is established.
According to the CBN, its Trade and Exchange Department will oversee compliance through routine on-site and off-site examinations.
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