Corporate Affairs Commission to Cancel Incorporation of Defunct Bureaux De Change

The Corporate Affairs Commission (CAC) has announced its plan to cancel the certificates of incorporation of Bureaux De Change (BDC) companies whose licenses were revoked by the Central Bank of Nigeria (CBN) earlier this year. This move follows the CBN’s decision to withdraw the operational licenses of 4,173 BDC operators for failing to comply with regulatory standards.

In a notice posted on its website on Wednesday, the CAC stated that these companies must change their names and objects within three months or face the cancellation of their incorporation certificates. The notice 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 vide 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.”

Failure to comply with this directive will result in the cancellation of their certificates of incorporation and dissolution of the companies. The CAC emphasized that it is unlawful for a company deemed dissolved to continue business operations.

The CBN revoked the licenses of the BDC operators in February due to noncompliance with several regulatory provisions. According to the acting Director of Corporate Communications, Sidi Hakama, the violations included failure to pay necessary fees, non-renewal of licenses within the stipulated period, and non-compliance with anti-money laundering and counter-terrorism financing regulations. The CBN has since issued new regulations and guidelines for BDC operations in Nigeria, introducing different capital base requirements for various categories of operators.

This regulatory action underscores the CBN’s commitment to enforcing compliance and maintaining the integrity of Nigeria’s financial system. The affected BDC operators are urged to align with the new guidelines to avoid further sanctions and ensure a transparent and robust operational framework.

This development marks a significant step in Nigeria’s ongoing efforts to reform and stabilize its financial sector, promoting greater transparency and accountability among financial service providers.