CAC to cancel certificates of BDCs with revoked licences

...cites several regulatory provisions that were flouted

CAC

The Corporate Affairs Commission (CAC) has announced its intention to cancel the certificates of incorporation of Bureaux de Change (BDC) operators whose licences have been revoked by the Central Bank of Nigeria (CBN).

In February, the CBN revoked the licences of 4,173 BDC operators for failing to adhere to regulatory guidelines.

This development was contained in a statement by the CBN’s acting director of corporate communications, Sidi Hakama.

The CBN cited several regulatory provisions that were flouted by the affected institutions, including the nonpayment of necessary fees within the stipulated period.

CBN said, “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 line with the above directive by the CBN, the CAC, in a notice on its website on Wednesday, said the certificates would be cancelled within three months if the affected companies did not change the names and objects of such companies.

“The general public is hereby informed that following the revocation of the operational licences 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 change the names and objects within the stipulated time frame shall result in cancellation of the 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,” the CAC notice read.

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