CBN’s Bold Move: Forex Sellers Above $10,000 Must Disclose Source

CBN’s Bold Move: Forex Sellers Above $10,000 Must Disclose Source

In a strategic maneuver aimed at fostering transparency and stability in the forex market, the Central Bank of Nigeria (CBN) has issued a directive requiring sellers of foreign exchange exceeding $10,000 to divulge the source of the currency. This pivotal decision, outlined in a revised regulatory framework, marks a significant step towards curbing malpractices within the Bureau De Change (BDC) sector……READ ALSO Minister Reveals CBN’s Struggle Against Currency Speculators

In a bid to rein in the excesses of BDC operators and quell uncertainties plaguing the forex landscape, the apex bank unveiled a comprehensive set of guidelines on Friday. Under these new regulations, sellers are mandated to adhere strictly to Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) protocols, along with existing foreign exchange laws and regulations.

In a move aimed at empowering customers, the CBN announced provisions allowing individuals to transfer foreign currencies from their domiciliary accounts with Nigerian banks directly to BDCs. Notably, all digital or transfer-based currency purchases by BDCs will be channeled into their Nigerian domiciliary accounts, ensuring heightened oversight and accountability.

Highlighting the diverse avenues for sourcing foreign currencies, the CBN specified various permissible channels for BDCs, including tourists, diaspora returnees, expatriates, and International Money Transfer Operators (IMTOs). Additionally, residents with foreign exchange inflows from various sources, such as work, travel, investment, or domiciliary accounts, are eligible suppliers.

Beyond the aforementioned channels, the CBN listed embassies, authorized foreign currency buyers like hotels, the Nigerian foreign exchange market (NFEM), and any other sources designated by the apex bank as viable avenues for sourcing foreign currencies.

As the CBN takes decisive steps to fortify the forex market against irregularities, these new regulations signify a concerted effort towards promoting transparency, accountability, and stability. With stringent oversight mechanisms in place, stakeholders can navigate the forex terrain with greater confidence and clarity.