The Federal Government, through the Corporate Affairs Commission (CAC), has issued a directive requiring Point of Sales (PoS) companies to register their agents, merchants, and individuals within a two-month timeframe in compliance with legal obligations and directives from the Central Bank of Nigeria (CBN).
This decision was reached during a meeting held on Monday in Abuja between Fintech representatives and the Registrar-General of the CAC, Hussaini Ishaq Magaji. The initiative aims to enhance regulatory oversight and safeguard the interests of Fintech customers while bolstering the nation’s economy.
Hussaini Ishaq Magaji emphasized that the registration deadline, set to expire on July 7, 2024, aligns with provisions outlined in Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, as well as the 2013 CBN guidelines on agent banking. He clarified that the directive was not targeted at specific groups or individuals but rather intended to ensure comprehensive protection for businesses operating within the fintech sector.
A statement released by the commission highlighted the collaborative effort between the CAC and Fintech companies, commonly known as PoS operators, to facilitate the registration process and adhere to regulatory requirements mandated by the CBN.
This directive comes amidst rising concerns over fraudulent activities involving PoS terminals and the recent prohibition by the CBN on trading in cryptocurrency or virtual currencies. According to a fraud report by the Nigeria Inter-Bank Settlement System Plc, PoS terminals accounted for 26.37% of fraud incidents in 2023.
In response to the CBN’s directives, major fintech firms such as Kuda, Opay, PalmPay, and Moniepoint have suspended new customer onboarding and cautioned against cryptocurrency trading on their platforms. The CBN’s actions are part of ongoing efforts to enhance regulatory compliance and mitigate risks associated with money laundering and terrorism financing within the fintech industry.
Despite the regulatory measures, fintech industry representatives have pledged to collaborate closely with the CAC to ensure the seamless implementation of the registration directive. They emphasized the importance of comprehensive awareness campaigns to ensure widespread understanding and compliance among stakeholders.
