|By Babatunji Wusu-
-CBN Issues Stern Warning to BDCs Over Money Laundering, Terrorism Risks
–Financial Institutions Urged to Strengthen Sanctions Compliance Framework
The Central Bank of Nigeria (CBN) has issued a strong warning to licensed Bureau De Change (BDC) operators and financial institutions, cautioning them against violating the nation’s anti-money laundering and counter-terrorism financing regulations.
The warning, contained in a circular signed by the Director of the Compliance Department, Amonia Opusunju, on Thursday, reaffirms the apex bank’s resolve to sanction defaulting operators who fail to align with regulatory provisions.
“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 CBN stated.
The circular also directed BDCs to ensure that staff training, customer onboarding, and transaction monitoring remain compliant with legal and regulatory expectations.
In a parallel directive, the apex bank urged financial institutions across the country to tighten their compliance systems with both domestic and international sanctions lists — including the United Nations Consolidated Sanctions List and the Nigerian Sanctions List.
“Financial institutions are required to maintain a robust and dynamic sanctions compliance framework,” the circular emphasized.
“They must prevent the use of their platforms for transactions involving designated individuals or entities, conduct real-time screening of customers and transactions, and promptly report suspicious activities to the Nigerian Financial Intelligence Unit (NFIU) and the CBN.”
This comes on the heels of significant policy shifts in the foreign exchange market. On February 27, 2024, the CBN resumed foreign exchange sales to BDCs, ending a ban imposed in 2021. In a follow-up policy announced on February 6, 2025, the CBN capped weekly FX purchases by BDCs at $25,000 from a single commercial bank.
The apex bank’s latest move signals its intent to tighten oversight on currency traders and enforce transparency in Nigeria’s financial ecosystem, especially amid global concerns over illicit financial flows and terrorist funding networks.
