The Corporate Affairs Commission (CAC) has taken a decisive step to ensure compliance with the Central Bank of Nigeria’s (CBN) directive regarding the compulsory registration of Point of Sale (PoS) operators across the country.
In a statement titled ‘ENFORCEMENT OF COMPLIANCE WITH CENTRAL BANK OF NIGERIA DIRECTIVE ON REGISTRATION BEFORE ONBOARDING,’ issued on Thursday, the CAC instructed financial institutions to enforce registration by July 7, 2024.
The Registrar-General and Chief Executive Officer of CAC, Hussaini Magaji (SAN), conveyed the directive to all affected banks, citing Section 863(1) of the Companies and Allied Matters Act (CAMA) and the CBN guidelines for Agent Banking, 2013, as the legal basis for the instruction.
This move follows the CBN’s memo issued on April 30, 2024, which mandated all non-individuals on the Agent Banking Authorization to register their businesses with the CAC in accordance with Section 863 of CAMA 2020.
The directive applies to all PoS terminals, including agents, merchants, or individuals, who are required to complete registration with CAC before commencing business operations.
According to Magaji, speaking at an event in Abuja on Wednesday, the nationwide registration of PoS operators is expected to contribute to reducing incidents of kidnapping and aiding security agencies in apprehending recipients of ransom payments from kidnap victims.
Recent data underscores the urgency of this measure, as PoS terminals accounted for 26.37% of fraud incidents in 2023, according to a report by the Nigeria Inter-Bank Settlement System Plc (NIBSS).
Additionally, last week, the CBN imposed restrictions on major fintech firms, such as Kuda, Opay, PalmPay, and Moniepoint, prohibiting them from onboarding new customers.
In response, these fintech firms cautioned their customers against trading in cryptocurrency or any virtual currency on their platforms, warning of potential account suspensions for engaging in such activities.
The enforcement of registration requirements for PoS operators aligns with broader efforts to enhance regulatory oversight and ensure the integrity and security of financial transactions within Nigeria’s burgeoning fintech ecosystem.