2 weeks Ago By Olusegun Odunewu
The Central Bank of Nigeria (CBN) has issued a stern warning to all licensed Bureau De Change (BDC) operators across the country, announcing its readiness to impose severe sanctions on those who flout anti-money laundering and terrorism financing regulations.This decisive move comes in the wake of the CBEX financial scandal, a devastating incident where thousands of Nigerians were swindled out of millions of naira through fraudulent foreign exchange transactions.The CBEX debacle has brought to light deep-seated regulatory lapses and exposed the vulnerability of Nigerians desperate for alternative forex sources amid a volatile economy and a perpetually weakened naira.
In a circular dated April 17, 2025, signed by Amonia Opusunju on behalf of the Director of the Compliance Department, the CBN announced the immediate commencement of a “mystery shopping” initiative.This strategy will deploy undercover compliance testers to secretly evaluate the real-time adherence of BDCs to regulatory standards.“This initiative will complement existing supervisory activities, including routine and targeted examinations as well as spot checks,” the circular stated.
Under the new plan, anonymous operatives will assess BDC operators’ compliance with critical obligations under Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Counter Proliferation Financing (CPF) frameworks.Specifically, BDCs must fully implement Know-Your-Customer (KYC) protocols, adhere to strict identification procedures, and promptly report suspicious transactions.These compliance obligations have frequently been overlooked by some operators keen on cutting corners and avoiding regulatory scrutiny.
The apex bank stressed that compliance with 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, 2024, is mandatory.“Full responsibility for compliance rests with each licensed BDC,” the CBN emphasized, warning that defaulters risk monetary penalties, license revocation, or even criminal prosecution.READ ALSO: CBN flags rising loan defaults among large firms, financial institutions amid credit tighteningFor many Nigerians, the CBEX saga remains more than just a cautionary tale—it represents profound personal loss.
Thousands were lured by promises of quick access to forex at favorable rates, only to find themselves trapped in a fraudulent web.The scandal underscores the urgent need for tighter oversight of the informal forex market, which has expanded significantly as Nigeria’s FX crisis worsens.BDCs, originally intended to meet small-scale foreign exchange needs, have now become central players in a sprawling, poorly regulated ecosystem rife with fraud, money laundering, and currency speculation.
Without consistent enforcement and systemic reform, experts warn that everyday Nigerians will continue to face significant risks. While the CBN’s launch of mystery shopping is seen as a step in the right direction, analysts caution that spot checks alone cannot repair a broken system.To truly safeguard the public, stakeholders argue, the CBN must go beyond surveillance.
It must invest in robust operator training, enhance transparency measures, deploy real-time reporting technologies, and—crucially—rebuild public trust in Nigeria’s forex institutions.As the nation struggles to recover from the CBEX shockwaves and other forex-related scams, citizens are being urged to exercise extreme caution, meticulously verify platforms, and conduct transactions only with licensed and reputable BDC operators.The post CBN launches mystery shopping to tighten BDC regulation after CBEX forex scandal appeared first on National Daily Newspaper.
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