Court Sentences BDC Operators to 5 years Imprisonment for Operating Without CBN Licence

The Federal High Court in Abuja on Monday sentenced two Bureau De Change (BDC) operators to five years’ imprisonment each, with an option of a N2 million fine, for conducting BDC business without a valid licence from the Central Bank of Nigeria (CBN).

The Federal High Court in Abuja on Monday sentenced two Bureau De Change (BDC) operators to five years’ imprisonment each, with an option of a N2 million fine, for conducting BDC business without a valid licence from the Central Bank of Nigeria (CBN).

Justice Obiora Egwuatu passed the judgments in two separate cases filed by the Economic and Financial Crimes Commission (EFCC).

The two defendants in the separate cases are Isah Sulaiman (trading under the name and style of Sly Exclusive Multi Concept) and Aminu Abdullahi, who was sued alongside Ninext Multi-Ventures Ltd.

Isah Sulaiman, trading under the name and style of Sly Exclusive Multi Concept, was accused by the EFCC of conducting the business of another financial institution, to wit: Bureau De Change, without a valid licence from the Central Bank of Nigeria.

• “That you, Aminu Abdullahi and Ninext Multi-Ventures Ltd., sometime between July 2021 and April 2026, in Abuja, within the jurisdiction of this Honourable Court, did conduct the business of other financial institutions, to wit: Bureau De Change, without a valid licence from the Central Bank of Nigeria, and that you thereby committed an offence punishable under Section 57(5) of the Banks and Other Financial Institutions Act, 2020,” the charge sheet against Abdullahi and Ninext partly reads.

Nairametrics reports that the duo had previously been arraigned before the court and pleaded guilty while opting for a plea bargain agreement.

A plea bargain agreement is a legal procedure in a criminal trial in which a defendant agrees with the prosecution to plead guilty in exchange for less severe penalties or sentencing.

What they are saying

At the scheduled judgments, T.M. Anamaeze, Esq., announced his appearance for the prosecution in the two separate cases.

• Delivering judgment in the case involving Abdullahi and Ninext, Justice Egwuatu held that the terms of the plea bargain reached by the parties, which recommended one year’s imprisonment, were not in tandem with the provisions of the Banks and Other Financial Institutions Act, 2020.
• The judge convicted the defendant and called upon the convict to exercise his right in view of the penalties prescribed by the relevant legislation, including BOVIA, rather than the sentence agreed upon by the parties in the plea bargain.
• The defendant’s legal team then prayed the court for leniency in sentencing.

After hearing from the lawyer, the judge said the convict, having agreed to abide by the sentence to be imposed by the court, was hereby sentenced to five years’ imprisonment or a N2 million fine.

• He held that where the convict opts to pay the fine, he shall pay it into the Treasury Single Account of the Federal Government and be remanded in prison until payment is made.
• The judge ruled that the days the convict spent in detention shall be deducted from the five-year prison term.

In the verdict against Isah Sulaiman, Justice Egwuatu also convicted him and imposed a five-year jail term or a N2 million fine.

Get up to speed

The development is the latest conviction of individuals and companies said to have contravened BOVIA, particularly by conducting the business of other financial institutions without a licence.

• Nairametrics previously reported that two Nigerian crypto-dealing companies, Paparaxy Global Ventures Limited and Lemskin Technologies Limited, had refunded N160 million to the Federal Government after being indicted for allegedly conducting the business of other financial institutions illegally.

The case stemmed from the EFCC’s ongoing investigation, which revealed that several bank accounts were linked to individuals allegedly using virtual cryptocurrency exchange platforms to manipulate the value of the naira illegally and launder proceeds from unlawful activities.

What you should know

In 2024, the CBN released the approved guidelines for the operations of Bureau De Change (BDCs) across the country while asking BDCs to reapply for licences online in line with the new regulatory requirements within six months.

• This was disclosed in a revised guideline for the operations of BDCs signed by the bank’s Director of the Financial Policy and Regulation Department, Haruna B. Mustafa, at the time.
• According to the regulatory requirements, Tier-1 BDCs were mandated to have a minimum capital base of N2 billion, while that of Tier-2 BDCs was set at N500 million.
• Furthermore, the bank, at the time, set the application fee for a Tier-1 licence at N1 million and that of Tier-2 at N250,000.

The licensing fees for Tier-1 and Tier-2 BDCs were set at N5 million and N2 million, respectively.

Some of the new guidelines for BDCs at the time banned them from options and derivatives trading, carrying out outward international transfers, receiving international inward transfers, dealing in crypto assets or with entities that deal in crypto assets, among other activities.