The Corporate Affairs Commission (CAC) has directed 4,173 Bureau De Change (BDC) companies, whose licences were recently revoked by the Central Bank of Nigeria (CBN), to change their names within three months. Failure to comply will result in the cancellation of their incorporation certificates and subsequent dissolution.
CAC’s Directive
In a notice issued on Wednesday, the CAC emphasized the urgency for shareholders and directors of these companies to take action. The Commission has published the details of the affected companies on its website for verification.
The CAC cited section 8 of the Companies and Allied Matters Act 2020 as the legal basis for enforcing this directive:
“Following the revocation of the operational licenses of 4,173 Bureau De Change companies by the Central Bank of Nigeria, as stated in the Federal Republic of Nigeria Official Gazette (Vol. 111) No. 37 of February 2024, for non-compliance with regulatory standards, the Corporate Affairs Commission, in exercise of its powers under section 8(1)(e) of the Companies and Allied Matters Act, 2020, advises these companies to change their names and objects within three months from the date of this publication.
Failure to do so within the stipulated timeframe shall result in the cancellation of the certificate of incorporation and dissolution. It is unlawful for a company deemed dissolved to carry on business.”
Background
The CBN recently revoked the operational licenses of over 4,173 BDC operators for failing to comply with specific regulatory guidelines. According to the apex bank, the companies did not meet the required payment of all necessary fees, including licence renewal, within the stipulated period. They also failed to render returns in line with the guidelines and comply with CBN directives and circulars, particularly those related to Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations.
CBN’s spokesperson, Sidi Hakama, stated that the bank acted under the powers conferred by the Bank and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change 2015.
The full list of affected BDCs can be found HERE.
