|By Babatunji Wusu-
-CBN Issues Stern Warning to BDCs, Banks Over Non-Compliance
–Regulator Threatens Sanctions Over Breach of Anti-Money Laundering Laws
The Central Bank of Nigeria (CBN) has warned Bureau De Change (BDC) operators and financial institutions against violating its framework on anti-money laundering and counter-terrorism financing, vowing to impose sanctions on defaulters.
In a circular signed by its Director of Compliance, Amonia Opusunju, on Thursday, the apex bank emphasized that all operators must adhere strictly to Nigeria’s financial crime prevention laws and global standards.
“BDC operators are reminded that they are required to fully comply with the provisions of the Money Laundering (Prevention and Prohibition) Act, 2022, the Terrorism (Prevention and Prohibition) Act, 2022, and the Regulatory and Supervisory Guidelines for Bureau De Change Operators in Nigeria, 2024,” the circular read.
The apex bank also listed other mandatory frameworks, including guidelines issued by the Nigerian Financial Intelligence Unit (NFIU).
CBN urged all licensed BDCs to train their staff, monitor transactions closely, and maintain rigorous customer onboarding procedures to stay fully compliant with the law.
In a similar vein, financial institutions were instructed to strengthen compliance with both domestic and international sanction lists, including the United Nations Consolidated Sanctions List and the Nigerian Sanctions List, in line with global anti-terrorism laws.
“Financial institutions must maintain a robust sanctions compliance framework that allows them to identify and respond promptly to updates or changes across applicable sanctions lists,” the CBN warned.
“They must also prevent their platforms from being used for transactions involving designated individuals or entities, conduct real-time screening of customers, and report suspicious transactions to the NFIU and notify the CBN where necessary.”
This warning follows several reforms introduced in the foreign exchange market over the past year. On February 27, 2024, the CBN lifted a 2021 ban and resumed the sale of FX to BDCs. By February 6, 2025, it further introduced a weekly cap of $25,000 per BDC from any single bank, aiming to curb market abuse and promote transparency.
The latest move signals the CBN’s renewed commitment to tightening regulatory compliance in Nigeria’s financial system amid concerns over illicit flows and terrorism financing.
