Victor EzejaAs the Nigerian government continues to adopt measures to combat money laundering, terrorism, among others, all Point of Sale operators (PoS) across the country have been mandated to register their agents, merchants and individuals with the Corporate Affairs Commission (CAC) latest by July 7, 2024.
This directive was contained in a statement released by the CAC after a meeting between the Registrar-General/Chief Executive Officer, CAC, Hussaini Magaji, SAN, with some fintech companies, also known as PoS, on Monday in Abuja, where the agreement was reached.
The statement by the commission read: “The Corporate Affairs Commission and fintech companies in Nigeria, better known as PoS operators, have agreed to a two-month timeline to register their agents, merchants, and individuals with the CAC in line with legal requirements and the directives of the Central Bank of Nigeria.
“The agreement was reached today (Monday) during a meeting between Fintechs and the Registrar-General, CAC, Hussaini Ishaq Magaji, in Abuja.”
According to the statement posted on CAC X handle, Magaji explained that “the measure aims at safeguarding the businesses of Fintech’s customers’ and strengthening the economy.”
The CAC boss further said the action has a legal backing as it is in line with Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020 as well as the 2013 Central Bank of Nigeria’s guidelines on agent banking.
Magaji said the timeline for the registration, which will expire on July 7, 2024, was not targeted at any groups or individuals but genuinely aimed at providing protection for businesses.
“Several speakers from the fintech industry pledged to collaborate with the Commission to ensure hitch-free implementation of the directive.
“Some of them, however, stressed the need for adequate and collective sensitization to ensure that the exercise achieved the desired results.”
This action comes as reports indicate rising cases of PoS fraud. Nigeria recorded N1.9 billion in PoS fraud in one year, with over 10,000 reported cases.
The CBN had last week, barred major fintech companies like Kuda, Opay, PalmPay, and Moniepoint from enrolling new users. The companies were also directed to caution their users against trading cryptocurrencies or any other virtual currency on their apps, threatening to block any accounts that were discovered to be involved in such activities. The CBN’s action was connected to a ongoing verification of the fintech companies’ Know-Your-Customer (KYC) procedures, due to worries about money laundering and terrorism financing.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
