The Federal Government through the Corporate Affairs Commission has given a two-month ultimatum registration deadline to Point of Sale companies, to register their agents, merchants, and persons with the commission in compliance with legal requirements and Central Bank of Nigeria guidelines.
The agreement was made on Monday in Abuja during a meeting between Fintechs and Hussaini Ishaq Magaji, the Registrar-General CAC.
The Nigeria Inter-Bank Settlement System reports that more than 1.9 million POS terminals have been deployed across the country by merchant and individuals.
Speaking at the meeting, the CAC boss said the measure aims at safeguarding the businesses of Fintech’s customers and strengthening the economy.
He emphasized further that the 2013 CBN guidelines on agent banking and Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020, supported the action equally.
The CAC boss stated that the registration period, which ends on July 7, 2024, was really intended to protecting businesses rather than any group or individual.
A 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 during a meeting between Fintechs and the Registrar-General, CAC, Hussaini Ishaq Magaji, in Abuja.”
This new guideline was issued in response to multiple PoS terminal fraud occurrences and the Central Bank of Nigeria’s intention to cease trading in cryptocurrency and other virtual currency. According to a fraud report by the Nigeria Inter-Bank Settlement System Plc, PoS terminals accounted for 26.37% of fraud incidences in 2023.
Major fintech companies including Kuda, Opay, PalmPay, and Moniepoint were prohibited by the CBN last week from onboarding new customers and instructed to caution their customers against trading cryptocurrency or any other virtual currency on their apps. The CBN also threatened to block any accounts that were discovered to be involved in these activities.
The CBN’s action was related to an ongoing audit of the fintech companies’ Know-Your-Customer procedures. These companies have been under investigation in recent months due to concerns about money laundering and financing of terrorism.
Prior to the directive from the CBN, a court order had been obtained by the Economic and Financial Crimes Commission to freeze at least 1,146 bank accounts owned by various individuals and companies that were allegedly involved in illicit foreign exchange operations.
In a notice issued on Friday, OPay said it would take strict measures against customers who violate its policy, which aligns with the Central Bank of Nigeria’s stance on cryptocurrency trading.
The statement added that 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.
