CAC Gives Revoked BDCs 3-Month Ultimatum to Rebrand

CAC Orders Revoked BDCs to Rename Within Three Months

CAC sets 3-Month deadline for revoked BDCs to change names...

CAC gives 3-month ultimatum to 4,173 revoked BDCs to change names, threatening dissolution if deadline is not met. Affected companies must comply with regulatory requirements to avoid cancellation of certificate of incorporation.

The Corporate Affairs Commission (CAC) has requested that the 4,173 Bureau De alter businesses whose licenses were recently withdrawn by the Central Bank of Nigeria (CBN) alter their names within three months.

According to reports, the CBN canceled the 4,173 BDC operators' operating licenses in March for failing to follow specific regulatory requirements.

The BDCs' certificate of incorporation would be revoked and they would be dissolved, according to a notice sent by CAC on Wednesday, if they did not modify the names under which they were registered as businesses.

The CAC stated that information on the impacted companies is also available on its website for further confirmation, even as it implores the directors and owners of the companies to take action.

"Following the revocation of the operational licenses 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 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 within three months from the date of this publication, change names and objects.

“Failure to change the names and objects within the stipulated time frame shall result in cancellation of 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 said.

The central bank had stated in March that the companies had not paid all the required fees, including license renewal within the guidelines' stipulated period, filing returns in accordance with the guidelines, and adhering to the guidelines, directives, and circulars of the central bank of Nigeria (CBN), specifically those pertaining to anti-money laundering (AML), countering the financing of terrorism (CFT), and counter-proliferation financing (CPF) regulations.

The Bank and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change 2015 (the Guidelines), according to CBN spokesperson Sidi Hakama, authorized the bank to take these actions.