Federal Government Mandate Registration of 1.9 Million PoS Operators
Written by Jerry Alomatu on May 7, 2024
The Federal Government, through the Corporate Affairs Commission (CAC), has mandated Point of Sales (PoS) companies to register their agents, merchants, and individuals with the commission within a two-month deadline. This directive aligns with legal requirements and the directives of the Central Bank of Nigeria (CBN).
The agreement was reached during a meeting between Fintechs and the Registrar-General of CAC, Hussaini Ishaq Magaji, in Abuja. Magaji emphasized that the measure aims to safeguard the businesses of Fintech customers and strengthen the economy. It is supported by Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, as well as the 2013 CBN guidelines on agent banking.
The registration deadline is set for July 7, 2024, and is not targeted at any specific groups or individuals but is genuinely aimed at providing protection for businesses. This directive comes amid concerns over frequent fraud incidents involving POS terminals and the CBN’s plans to restrict trading in cryptocurrency or any virtual currency.
POS terminals accounted for 26.37% of fraud incidents in 2023, according to a fraud report by the Nigeria Inter-Bank Settlement System Plc. In response, the CBN stopped major fintech firms from onboarding new customers and instructed them to warn against cryptocurrency trading, threatening to block accounts found engaging in such activities.
The CBN’s actions are part of an ongoing audit of fintechs’ Know-Your-Customer processes amid concerns about money laundering and terrorism financing. The Economic and Financial Crimes Commission has also obtained a court order to freeze bank accounts allegedly involved in illegal foreign exchange transactions.
Several speakers from the fintech industry pledged to collaborate with the commission to ensure the smooth implementation of the directive. This move underscores the government’s efforts to regulate the fintech sector and enhance transparency and security in financial transactions.
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Author: Jerry Alomatu
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