The Federal Government of Nigeria, through the Corporate Affairs Commission, CAC, has issued a two-month registration deadline to Point of Sales, PoS, companies in the country.
The CAC ordered the PoS companies to register their agents, merchants, and individuals with the Commission. This, it stated, is in line with legal requirements and the directives of the Central Bank of Nigeria, CBN.
This was disclosed on Monday after a meeting between Fintechs and the Registrar-General CAC, Hussaini Ishaq Magaji, in Abuja.
According to the Nigeria Inter-Bank Settlement System, there are over 1.9 million PoS terminals deployed by merchants and individuals across the country.
But speaking at the meeting, the CAC boss said the measure aims at safeguarding the businesses of Fintech’s customers. He also said the move will strengthen the economy.
Magagi further added that the action was equally backed by Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020. As well as the 2013 CBN guidelines on agent banking.
He 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.
The statement 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 during a meeting between Fintechs and the Registrar-General, CAC, Hussaini Ishaq Magaji, in Abuja.”
This new directive came against the backdrop of frequent fraud incidents involving POS terminals. And plans to stop trading in cryptocurrency or any virtual currency by the Central Bank of Nigeria.
According to a fraud report by the Nigeria Inter-Bank Settlement System Plc, POS terminals accounted for 26.37 per cent of fraud incidents in 2023.
Recall that last week, the CBN ordered the major fintech firms Kuda, Opay, PalmPay and Moniepoint from onboarding new customers. The apex bank instructed the companies to warn their customers against trading in cryptocurrency. Or any virtual currency on their apps. The CBN, therefore, threatened to block any accounts found engaging in such activities.
According to report, the CBN’s directive has been linked to an ongoing audit of the Know-Your-Customer process of the fintechs. The fintechs have been under scrutiny in recent months over concerns around money laundering and terrorism financing.
Recall that the Economic and Financial Crimes Commission, had obtained a court order to freeze at least 1,146 bank accounts. These are accounts owned by various individuals and companies allegedly involved in illegal foreign exchange transactions.
But in a notice issued on Friday, one of the fintechs, OPay said it would comply with the CBN directives. It warned that it would take strict measures against customers who violate its policy. This must be in line with the Central Bank of Nigeria’s stance on cryptocurrency trading.
source: PUNCH
