The House of Representatives on Wednesday resolved to invite the Governor of the Central Bank of Nigeria, CBN, Olayemi Cardoso, and the Chief Executive Officers of Commercial Banks to appear before it to propose solutions to the challenges posed by the lack of documentation of Point of Sale Users across the country.
The summon was followed by the consideration and adoption of a motion sponsored by the member representing Ehime/Mbano/Uboma/Obowo Federal Constituency, Imo State, John Okafor during Wednesday’s plenary.
The Imo lawmaker identified the increasing challenges associated with the undocumented identities of POS users in Nigeria for the motion.
He said, “Cases of fraudulent activities within the financial system have been established against POS users.
Okafor, therefore, added that there is “A necessity to combat such illicit practices. And to safeguard the integrity of financial transactions within Nigeria.”
“The House is aware that undocumented POS transactions create a loophole for fraudulent activities. Such as identity theft, money laundering, and unauthorized transactions.
“By enforcing the documentation of users’ identity, the incidence of fraud will significantly reduce. And the security of financial transactions in Nigeria will be enhanced.
“The House is aware that proper documentation of POS users’ identities fosters accountability among operators and users. This transparency will help trace transactions back to the individuals involved. And holding them accountable for illegal activities.” the lawmaker said.
The All Progressives Congress lawmaker, however, expressed what he called regulatory bias and enforcement challenge. He, therefore, accused the apex bank of not following due process in dealing with the relevant regulatory bodies.
Okafor, therefore, called for immediate intervention to avert this ugly situation. This, he noted is important to “Shield Nigerians from the hands of criminals through the use of the POS system.”
He said, “Establishing a system for verifiable documentation of POS users’ and recipients’ identity aligns with the national and international financial regulatory requirements. Which is to prevent financial crimes and ensure compliance with anti-money laundering and know your customer regulations.”
The motion received overwhelming support from members of the House.
This is even as Speaker Tajudeen Abbas who presided over plenary mandated the House Committees on Digital and Electronic Banking, Finance, Banking Regulations, and Financial Crimes to invite the Central Bank of Nigeria Governor. Also to be invited are the Group Managing Directors of all Commercial Banks and Other Financial Institutions utilizing POS. They are to appear before the Committee.
The Speaker gave the Committees four weeks to report back to the general House.
source: PUNCH
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