According to information obtained by GTN, Point of Sale companies have been given a two-month deadline by the Federal Government’s Corporate Affairs Commission to register their agents, merchants, and individuals with the commission in compliance with legal mandates 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 installed across the country by businesses and private citizens.
The head of the CAC stated during the meeting that the goal of the proposal is to protect Fintech customers’ businesses and boost the economy.
He further stressed 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.
The CAC boss 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.
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 new directive was issued in the wake of multiple POS terminal fraud occurrences and the Central Bank of Nigeria’s intention to cease trading in cryptocurrencies and other virtual currencies. 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 accepting new users and were directed to caution their users against trading cryptocurrencies 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 stemmed from a continuous assessment of the fintech companies’ Know-Your-Customer procedures. These companies have been under investigation in recent months due to worries about money laundering and financing of terrorism.
Prior to the direction from the CBN, a court order had been obtained by the Economic and Financial Crimes Commission to freeze at least 1,146 bank accounts belonging to different people and businesses that were allegedly engaged in illicit foreign exchange operations.
OPay warned in a notification on Friday that it would impose severe penalties on users who disobey its policies, which are in line with the Central Bank of Nigeria’s position on cryptocurrency trading.
The statement also stated that a number of fintech industry speakers committed to working with the commission to make sure the directive is implemented without a hitch.
