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The Federal Government has pledged to crack down on point-of-sale (PoS) operators who do not adhere to the requirement to register with the Corporate Affairs Commission by July 7, 2024.
The Registrar-General, CAC, Hussaini Magaji, disclosed this during the official introduction of the CAC registration process for fintech agents and merchants on Wednesday in Abuja.
The occasion also celebrated the introduction of a round-the-clock service center aimed at assisting potential applicants in receiving quick responses to inquiries and approvals.
Magaji emphasized that the compulsory registration of point-of-sale (PoS) operators across the country will contribute to the decline in kidnapping incidents and assist law enforcement in apprehending individuals receiving ransom payments from kidnapping victims.
The government, via the commission, has set a two-month deadline for PoS operators to register as corporate entities with the commission, aligning with the regulatory mandates and directives of the Central Bank of Nigeria.
A new initiative, backed by Section 863, Subsection 1, of CAMA 2020 and 2013 CBN guidelines on agent banking, aims to safeguard businesses and stimulate economic growth by tackling fraud with PoS terminals and outlawing cryptocurrency trading.
According to a fraud report by the Nigeria Inter-Bank Settlement System Plc, PoS terminals contributed to 26.37% of fraud incidents in 2023.
Recently, the Central Bank of Nigeria (CBN) put a halt to major fintech companies such as Kuda, Opay, PalmPay, and Moniepoint from accepting new customers. Following this, these fintech firms cautioned their users against trading in cryptocurrency or any virtual currency on their platforms. They further stated that they would block any accounts discovered participating in such transactions.
Addressing attendees, Hussaini reaffirmed the government’s commitment to implementing the mandate by establishing a fully digitized service center for streamlined registration.
He stressed that the registration process complies with legal standards and CBN directives, mandating individuals and businesses to be included in its database.
Additionally, he cautioned that the 60-day deadline would not be extended and warned of consequences for those who fail to comply.
statement read, “We have launched a 24-hour service center to accommodate inquiries from point-of-sale operators and agents who may want to register as directed by the new policy. The secretariat is filled with staff members who have the responsibility of availability, and some are being saddled with the responsibility of approving requests. We have equipped the secretariat with the necessary facilities.
“This is to show you how the government is taking this issue seriously, and the center will be open for 24-hour service. It will be open for compliance and any feedback from the public, especially PoS operators who have been mandated to register their businesses with the commission.”
“We have trained our staff to accommodate these activities, and these staff can work from home, and that’s why we said 24-hour service. We have equipped them with facilities, and they can work from home for approvals and availability segments. The deadline remains 60 days, and it will end July 7th.”
“Of course, the mandatory registration will reduce crime and fraudulent practices. The commission is hosting data, and if any crime is committed anywhere, the security agencies would have to reach out to us to know the people behind the company and the fraudsters. But if they are not registered, we can’t do anything, and that’s the essence of registration.
“We have had a situation where a ransom is being paid with a PoS terminal and a lot of fraud, but after the registration, if anything happens, we can provide the details of the persons behind the company to the government. We will capture the picture and other relevant information, and this is a good development for the country.”
“After the deadline, we would go after defaulters. If you have been identified as a criminal, security agents will go after you. We will go after them because some are being chased by the security agencies already.”
“The law has stated that for any person to carry out business activity in the country, your business must be legitimate, and for your business to be legitimate, you must register. Whether you are doing your business as an individual or as an agent, you must register with us.
“The POS terminal holders are doing business, and we are now enforcing part of the provisions of the Company and Allied Matters Act.We have been on this issue since December, and extending it to July means they have six months. We have provided a timeline in the interest of their business.
