Just In: CAC Issues Threat To Revoke Certificates Of BDCs With Revoked Licenses

Just In: CAC Issues Threat To Revoke Certificates Of BDCs With Revoked Licenses

The Corporate Affairs Commission (CAC) has declared its plan to revoke the incorporation certificates of some Bureaux De Change (BDCs) following the revocation of their licenses by the Central Bank of Nigeria (CBN).

In a statement on its website on Wednesday, CAC stated that it would revoke the certificates of these companies’ incorporation within a span of three months if they fail to alter the names and purposes of these entities.

“The general public is hereby informed that following the revocation of the operational licenses of 4,173 Bureau De Change companies by the Central Bank of Nigeria vide a Federal Republic of Nigeria Official Gazette (Vol. 111) No. 37 of February 27, 2024 for noncompliance with Regulatory Standards, the Corporate Affairs Commission in the exercise of its powers under section 8(1)(e ) of the Companies and Allied Matters Act, 2020 advises these companies to within three months from the date of this publication, change the names and objects of such companies.

“Failure to change the names and objects within the stipulated time frame shall result in cancellation of certificate of incorporation and dissolution. It is to be noted that it is unlawful for a company whose certificate has been deemed dissolved to carry on business,” the CAC notice read.

Ireporteronline recalls that in February 2024, the CBN cancelled the licenses of 4,173 Bureau De Change operators due to their non-compliance with regulatory requirements.

The announcement was made in a statement by the acting Director of Corporate Communications, Sidi Hakama.

The violations of regulatory provisions cited in the statement include failure to pay all required fees within the specified timeframe.

The CBN statement said, “The affected institutions failed to observe at least one of the following regulatory provisions: Payment of all necessary fees, including licence renewal, within the stipulated period in line with the guidelines.

“Rendition of returns in line with the guidelines; compliance with guidelines, directives, and circulars of the CBN, particularly Anti-Money Laundering, Countering the Financing of Terrorism and Counter-Proliferation Financing regulations.”

Subsequently, the CBN issued updated rules and instructions for the operations of the Bureau de Change in the country, introducing new classifications with varying capital requirements.