CBN to Deploy Mystery Shoppers to Monitor Activities of Bureau de Change Operators

• The CBN has introduced a "mystery shopping" initiative to secretly assess BDC operators’ compliance with anti-money laundering laws
• Anonymous inspectors will visit BDCs to ensure they follow key regulations, such as customer identification and the reporting of suspicious transactions
• The CBN warned that violators will face sanctions, including fines or licence revocation, and emphasised that the checks have already begun

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.

The Central Bank of Nigeria (CBN) has announced plans to secretly monitor bureau de change (BDC) operators to ensure they follow rules against money laundering and terrorism financing.

In a notice signed by Amonia Opusunju, the director of the compliance department, the CBN said it will carry out “mystery shopping” — a method used to check service quality and rule compliance without revealing the inspector’s identity.

CBN puts BDCs under scrutiny with mystery shopping

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The apex bank said the move is part of its enhanced oversight of illicit financial flows in the country.

The bank explained that anonymous compliance testers will visit BDCs to check if they are following key rules like properly identifying customers, carrying out know-your-customer (KYC) procedures, and reporting any suspicious activities.

The CBN said:

“BDC operators are reminded that they are required to fully comply with the provisions of – money laundering (prevention and prohibition) Act, 2022. Terrorism (prevention and prohibition) Act, 2022, regulatory and supervisory guidelines for bureau de change operators in Nigeria, 2024.”

The CBN has warned that any bureau de change (BDC) found breaking the rules on money laundering and terrorism financing will be punished. This could include fines or even losing their operating licence.

The bank also urged all BDCs to make sure their activities, staff training, customer checks, and transaction monitoring follow all the required guidelines.

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It added that the secret checks will start right away.

On February 27, 2024, the Central Bank changed its earlier stance and allowed the sale of foreign exchange (FX) to bureau de change (BDC) operators again, after stopping it in 2021.

One year later, the CBN set a new rule that limits BDCs from buying no more than $25,000 weekly from any one bank.

Source: Legit.ng