The Central Bank of Nigeria (CBN) has announced the initiation of mystery shopping exercises across bureau de change (BDC) outlets as part of its intensified effort to ensure strict adherence to anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.
The decision, outlined in a circular dated April 17, 2025, and signed by Director of the Compliance Department, Amonia Opusunju, is aimed at curbing illicit financial flows and enhancing oversight of Nigeria’s financial ecosystem.
“As part of its enhanced effort to combat money laundering, the financing of terrorism, proliferation financing, and other illicit financial activities, the Central Bank of Nigeria (CBN) hereby notifies all Bureau de Change (BDC) operators in Nigeria that it will commence mystery shopping exercises with immediate effect.”
Mystery Shopping: A New Strategy for Compliance Oversight
Mystery shopping—a globally recognized technique used by regulatory bodies and private companies—is the CBN’s latest tool to monitor service quality, adherence to regulations, and operational standards.
- This exercise involves deploying undercover compliance officers to assess the implementation of critical regulatory requirements by BDC operators.
- These requirements include robust customer identification processes, Know-Your-Customer (KYC) procedures, and the reporting of suspicious transactions.
The apex bank emphasized that mystery shopping exercises will commence immediately, signaling the urgency of bolstering compliance measures across the BDC sector.
“BDC operators are reminded that they are required to fully comply with the provisions of the Money Laundering (Prevention and Prohibition) Act, 2022, the Terrorism (Prevention and Prohibition) Act, 2022, and the Regulatory and Supervisory Guidelines for Bureau De Change Operators in Nigeria, 2024, among other relevant laws, regulations, and guidelines issued by the CBN and the Nigerian Financial Intelligence Unit (NFIU),” the circular stated.
Sanctions for Non-Compliance
The CBN has warned that operators found to be in breach of AML/CFT regulations will face severe consequences.
These include monetary penalties and the possible revocation of licenses.
Furthermore, all BDC operators are required to ensure that their operations, staff training, transaction monitoring, and customer onboarding procedures align fully with applicable compliance frameworks.
“For the avoidance of doubt, full responsibility for compliance rests with each licensed BDC,” the CBN said, emphasizing its zero-tolerance policy on violations.
What you should know
The announcement comes in the wake of regulatory shifts aimed at reshaping Nigeria’s foreign exchange market.
- In February 2024, the CBN reinstated the sale of foreign exchange (FX) to BDC operators, reversing its 2021 decision to halt FX sales due to concerns about market malpractice.
- By February 2025, the CBN introduced additional measures, limiting BDC operators to purchasing a maximum of $25,000 weekly from a single commercial bank.
These regulatory adjustments reflect the CBN’s broader strategy to balance market stability with heightened compliance.
The move to mystery shopping represents the apex bank’s commitment to strengthening Nigeria’s financial integrity and combating illicit activities that could undermine its financial stability.
