In a bid to enhance regulatory compliance and safeguard businesses, the Federal Government, through the Corporate Affairs Commission (CAC), has set a two-month deadline for Point of Sales (PoS) companies to register their agents, merchants, and individuals with the commission.
This decision emerged from a meeting held on Monday between Fintechs and the Registrar-General of the CAC, Hussaini Ishaq Magaji, in Abuja.
Highlighting the rationale behind the move, Magaji emphasized that the initiative aimed to protect the interests of Fintech customers and fortify the nation’s economy. He underscored the legal backing for this action, citing Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, alongside the 2013 Central Bank of Nigeria (CBN) guidelines on agent banking.
The registration timeline, expiring on July 7, 2024, is not aimed at targeting specific groups or individuals but is geared towards providing comprehensive protection for businesses, Magaji clarified.
A statement issued by the commission stated, “The Corporate Affairs Commission and Fintech companies in Nigeria, popularly known as PoS operators, have agreed to a two-month timeline to register their agents, merchants, and individuals with the CAC.”
This directive comes amidst rising concerns over fraudulent activities involving POS terminals and the recent announcement by the Central Bank of Nigeria to halt trading in cryptocurrency or any virtual currency. 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.
Recently, major fintech firms like Kuda, Opay, PalmPay, and Moniepoint were instructed by the CBN to cease onboarding new customers and to caution existing customers against cryptocurrency trading on their platforms. This move, linked to an ongoing audit of the Know-Your-Customer process, underscores concerns surrounding money laundering and terrorism financing.
In alignment with the CBN’s stance, OPay announced strict measures against customers engaging in cryptocurrency trading, reflecting a broader industry shift towards regulatory compliance.
Despite these developments, speakers from the fintech industry pledged collaboration with the commission to ensure the seamless implementation of the registration directive. However, they stressed the importance of extensive sensitization efforts to achieve the desired outcomes of the exercise.
