The Central Bank of Nigeria (CBN) has launched a nationwide mystery shopping initiative targeting Bureau De Change (BDC) outlets, intensifying efforts to combat money laundering, terrorism financing, and other illicit financial activities.
In a circular dated April 17, 2025, signed by Amonia Opusunju, Director of the Compliance Department, the CBN announced the deployment of undercover compliance officers to assess the adherence of BDCs to anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.
“This initiative forms part of the bank’s enhanced strategy to strengthen compliance within the financial sector,” the circular stated, emphasizing the need for vigilance against terrorism financing and proliferation of illicit funds.
The mystery shopping exercise will evaluate compliance with key regulatory protocols, including customer identification, Know-Your-Customer (KYC) practices, and the prompt reporting of suspicious transactions. By conducting these real-time inspections, the CBN aims to proactively detect lapses and ensure BDCs are not conduits for illegal financial flows.
BDC operators were reminded of their obligations under several key frameworks, including the Money Laundering (Prevention and Prohibition) Act, 2022; the Terrorism (Prevention and Prohibition) Act, 2022; and the 2024 Supervisory Guidelines for BDC Operators. These obligations are reinforced by directives from the Nigerian Financial Intelligence Unit (NFIU) and the CBN.
The apex bank stressed that non-compliance will attract strict penalties, including fines and possible revocation of operational licences. BDCs are also required to implement robust internal controls, staff training programmes, and effective customer onboarding systems in line with both local and international best practices.
“Full responsibility for compliance lies with each licensed BDC,” the CBN warned, underscoring its zero-tolerance stance on regulatory breaches.
This move comes amid ongoing reforms in Nigeria’s foreign exchange (FX) landscape. After suspending FX sales to BDCs in 2021 due to malpractice concerns, the CBN reinstated them in 2024 and introduced a $25,000 weekly FX purchase cap per BDC in early 2025.
The introduction of mystery shoppers is part of a broader effort to improve transparency, restore investor confidence, and align Nigeria’s financial practices with global AML/CFT standards.
