Fraud: FG Issues Fresh Directive To 1.9 Million PoS Operators, Issues Deadline

The Federal Government, through the Corporate Affairs Commission (CAC), has mandated that all point-of-sale (PoS) companies register their agents, merchants, and individual operators within two months.

Naija News reports that this directive aligns with the legal requirements and guidelines issued by the Central Bank of Nigeria (CBN).

The decision was finalized during a Monday meeting in Abuja, chaired by the CAC Registrar-General, Hussaini Ishaq Magaji. Major stakeholders in the fintech industry attended the meeting.

According to the Nigeria Inter-Bank Settlement System, the country currently hosts over 1.9 million PoS terminals.

Magaji emphasized that the registration directive is a strategic measure to protect the businesses of Fintech customers and fortify the national economy.

It draws legal backing from Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, and the 2013 CBN guidelines on agent banking.

“The action is not targeted at any particular group or individuals but is genuinely aimed at providing protection for businesses,” Magaji stated, clarifying the intent behind the July 7, 2024, registration deadline.

This regulatory step comes in the wake of rising incidents of fraud involving PoS terminals and the CBN’s stringent measures against illicit financial activities, including a crackdown on cryptocurrency trading.

A 2023 fraud report by the Nigeria Inter-Bank Settlement System Plc revealed that PoS terminals accounted for 26.37 percent of recorded fraud incidents.

Further tightening its grip on financial malpractices, the CBN recently halted customer onboarding by prominent fintech firms such as Kuda, Opay, PalmPay, and Moniepoint.

These restrictions align with an ongoing audit of their Know-Your-Customer processes amid concerns over money laundering and terrorism financing.

Simultaneously, the Economic and Financial Crimes Commission secured a court order to freeze over 1,146 bank accounts linked to illegal foreign exchange transactions.

Following suit, OPay issued a stern warning to its users against engaging in cryptocurrency transactions, affirming its compliance with CBN’s policies.

The CAC’s statement also highlighted the collaborative spirit of the fintech industry, with several sector representatives pledging their support for seamless implementation of the new regulations.

This development marks a critical step by the government in tightening regulatory oversight over the burgeoning fintech sector, with a keen focus on curbing financial crimes and enhancing the operational integrity of digital financial services.