The Corporate Affairs Commission (CAC) has announced plans to cancel the certificates of incorporation for Bureau De Change (BDC) operators whose licenses were revoked by the Central Bank of Nigeria (CBN) earlier this year.
In an announcement posted on its website on Wednesday, the CAC stated that these BDC companies must alter their names and business objectives within three months to avoid the cancellation.
The notice from CAC read, “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 via 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.”
The notice further stated, “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.”
In February, the CBN revoked the licenses of 4,173 BDC operators for not meeting regulatory guidelines. According to Sidi Hakama, the acting Director of Corporate Communications at CBN, these BDCs failed to pay necessary fees, renew licenses on time, and adhere to guidelines, especially those related to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT).
The statement from the CBN highlighted, “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.”
In response to these violations, the CBN has introduced new regulations and guidelines for BDC operations, including new categorisations with different capital bases.
These measures are part of a broader effort to ensure stricter compliance and enhance the regulatory framework governing BDC operations in Nigeria. The CAC and CBN’s actions underline the importance of adherence to financial regulations to maintain stability and integrity in the financial sector.
