The news:
- Nigeria’s Corporate Affairs Commission (CAC) has directed 4,173 Bureau De Change (BDC) firms to change their names within three months following the Central Bank of Nigeria (CBN)’s recent revocation of their licences.
- Per the notice released on Wednesday, July 10, 2024, the Commission warned that any BDC that fails to change their registered business names as directed would risk the cancellation of their certificate of incorporation, and subsequently, dissolution.
- The company says it’s exercising its power to enforce the name change in line with section 8(1) (e) of the Companies and Allied Matters Act 2020.
Advising shareholders and directors of the affected companies to take necessary action, the regulator noted that the details of the companies in question have been published on its website for confirmation.
Affected companies have until October 10, 2024, to fulfil the requirement of the Commission.
“It is to be noted that it is unlawful for a company whose certificate has been deemed dissolved to carry on business,” part of the notice read.
The commission stated that the directive for a name became necessary following the revocation of the operational licences of 4,173 BDC firms by the CBN for non-compliance with Regulatory Standards.
In March 2024, Techpoint Africa reported that CBN withdrew the operational licences of some registered BDC operators because they failed to comply with certain regulatory guidelines.
Specifically, the apex bank disclosed that the BDC companies whose licences were revoked defaulted on the required payment of all necessary fees, including licence renewal, within the period stipulated in the guidelines.
They also failed to comply with the Commission’s guidelines for the rendition of returns and directives of the CBN, particularly Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT) and Counter-Proliferation Financing (CPF) regulations.
At the time, Sidi Hakama, the spokesperson of the apex bank said the CBN acted in line with the regulatory powers allowed it under the Bank and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change 2015 (the Guidelines).
On February 23, 2024, the CBN released a draft containing proposed regulatory and supervisory guidelines for Bureau de Change operators in the country, forcing them to go digital. The revised draft guidelines mandated BDC operators to integrate with the CBN and Nigeria Interbank Settlement System (NIBSS) before obtaining final approval for their licences.
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