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CBN Issues Additional Requirements on Sales of Foreign Currency Proceeds of IMT to BDCs

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Tuesday, August 09 2016 5:52pm /CBN

Further TO the Circular Reference No. TED/FEM/FPC/GEN/01/004 Dated July 22, 2016, which granted approval to Authorised Dealers who are agents to approved International Money Transfer Operators (IMTSO) to sell foreign currency accruing from inward money remittances to licensed Bureaux De Change Operators (BDCs), the following additional requirements shall apply.

1.   Authorised Dealers shall sell foreign exchange cash to BDCs subject to a maximum of USD30, 000.00 (Thirty Thousand United States Dollars) to a BDC per week. A BDC shall nominate its preferred Authorised Dealer (DMB) and can only procure the said amount from only that bank of its choice in a week. Any breach of this condition will attract appropriate sanction.

2.  The selling rate by the Authorised Dealers to BDCs shall be the buying rate from IMTP plus a margin not exceeding 1.5%

3.   Foreign exchange cash purchased by BDCs from Authorised Dealers (Ads) shall be sold to foreign exchange end-users at a rate not exceeding two (2) percent margin above the buying rate.

4.  For the avoidance of doubt, the two (2) percent margin stated in (3) above shall be applicable to all funds to be retailed by BDCs regardless of source of fund;

5.   Authorised Dealers shall continue to render weekly returns on sales to BDCs and the BDCs shall also continue to render weekly returns on purchases from Ads as specified in the Attached excel format to Trade & Exchange Department, CBN, Abuja;

6.    Funds purchased by BDCs shall be disbursed for the following eligible transactions only. In all cases, maximum disbursement per transaction shall not exceed USD5,000.00


a.       Business Travel Allowance / Personal Travel Allowance

b.      Overseas School Fees

c.       Overseas Medical Fees

 

7.    Record shall be maintained for all transactions by the BDCs showing the BVN of the end-user, including endorsement of the amount disbursed in the International Passport of the beneficiary;

8.    International Money Transfer Service Operators shall continue to render weekly returns on their operations with agent banks directly to the CBN as specified in the attached format.

9.    All BDCs are required to render weekly returns on foreign exchange purchases from Authorised Dealers and other sources as well  sales to the Director, Trade & Exchange Department as specified in the attached excel format; and

10.  It is to be noted that, Authorised Dealers and BDC operators shall ensure strict compliance to the provisions of Anti-Money Laundering Laws and the observance of appropriate KYC principles in the handling of these transactions.

11.  Any Authorised Dealer and BDC that diverts funds or violates the provisions of these guidelines shall attract appropriate sanction including, suspension of dealership licenses 

Please note and ensure compliance 

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