The Association of Bureaux De Change Operators of Nigeria is partnering with Travelex Nigeria, on strategies that will enable the Bureaux de Change access over $20 billion annual Diaspora remittances to Nigeria.
ABCON President, Alhaji Aminu Gwadabe, disclosed this at a one-day sensitisation programme organised for BDCs by Travelex Nigeria and Travelex UK, recently in Abuja.
Gwadabe said Travelex and ABCON were reviewing the possibility of ABCON riding on the Travelex high-tech for BDCs to become direct agents of International Money Transfer Operators.
According to him, the digitisation of the BDCs operations through the launch of ABCON Live Run Automation Portal which has the backing of the CBN shows the BDCs’ readiness and commitment to full digitisation of their operations to provide seamless services to forex end-users, and become direct agents of IMTOs.
He said the Central bank of Nigeria captureed only six per cent of the Diaspora remittances and the rest went under the counter without any trace, adding that riding on the Travelex high-tech will enable the BDCs address the reoccurring complaints of poor infrastructure which has kept the operators away from accessing the Diaspora remittances for years.
Gwadabe, who spoke on the theme: “ABCON’s Plans and Proposals for strengthening and improving the Foreign Exchange Market viz-a-viz the BDC sub-sector in the economy,” said the BDC operators were obliged by law to render daily, monthly and annual returns to the CBN.
He said the daily returns known as Daily Transaction Returns give details of the total sales made for the day by the BDC and come in as DTR 202, DTR 217, DTR 305 and DTR 315.
The DTR 217 return gives the information of the customers of whom the forex was sold to information like, the name, the international Passport number, Bank Verification Number, address, Tin number, email address among others while DTR 305 provides details of the customers as well their destination and reason for the purchase of forex. The total amount of forex sold to them is also mentioned with the transaction date.
According to Gwadabe, DTR 315 tells BDCs’ opening balance, amount purchased in forex, the equivalent in naira and the rate of purchase, amount sold in forex, the equivalent in naira and the selling rate, as well as the closing balance.
“The Monthly Transaction Returns also known as the MTR returns is a compilation of the daily and it’s rendered to Trade and Exchange Department. It also comes in four parts-MTR202, MTR217, MTR 305 and MTR 315. It is pertinent to note that these returns as described above are rendered in soft copies (electronically) and hardcopies to the apex bank,” Gwadabe stated.
According to the ABCON boss, any organisation seeking a licence for the operation of BDC in Nigeria shall apply in writing to the CBN Governor and pay a minimum of N35 million share capital, among other requirements.
He said the BDCs would continue to render weekly returns on purchases from the banks to Trade and Exchange Department of the apex bank. “We will also continue to ensure strict compliance with the provisions of the anti-money laundering laws’ observance of appropriate Know-Your-Customer principles in the handling of forex transactions.”
Gwadabe said BDCs is a financial institution licensed to carry on small-scale foreign exchange business on a stand-alone basis, also known as authorised buyer, charged with the responsibility to buy foreign bank notes, coins and travellers’ cheques from members of the public, authorised dealers and the CBN.
He said the BDCs are also authorised to sell foreign bank notes, TCs and coins up to $5,000 or its equivalent in other foreign currency (or as specified by the CBN) per transaction, to members of the public.
They are also to sell business and personal Travel allowances (BTA and PTA) to intending travelers, subject to documentation and the limit set from time to time by the CBN.
“Bureau De change can engage in transactions of funds to a limit of $5,000 per transaction in respect of the under-listed transaction and/or any that may be specified from time to time by the CBN. They are also into mortgage monthly payment, school fees payment abroad, credit card payment, utility bills, life Insurance Premium payment, and that all authorised buyers are required to render returns in respect of their foreign exchange transaction to the CBN,” he said.
