The Corporate Affairs Commission (CAC) has announced its intention to take strict actions, including shutting down Point of Sales (PoS) businesses that failed to register by the September 5, 2024, deadline. This announcement was made in a public notice issued on Friday, following inadequate compliance with the CAC’s directive.
According to the CAC, unregistered PoS operators may be engaging in “unwholesome activities,” raising concerns about the integrity of some fintech operators. The Commission further emphasized that it is collaborating with law enforcement agencies to ensure comprehensive enforcement, which could include business closures and other severe legal consequences for defaulters.
The CAC had originally set a July 7, 2024, deadline for registration but extended it by 60 days, giving operators until September 5 to comply. However, many PoS businesses failed to meet the requirement despite the extension.
Meanwhile, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has challenged the CAC’s registration directive in court, arguing that the mandatory registration violates the Companies and Allied Matters Act (CAMA). The court is expected to hear the case later this month.
The CAC’s move comes in response to rising fraud incidents involving PoS terminals, with the Nigeria Inter-Bank Settlement System (NIBSS) reporting that PoS devices accounted for over 26% of fraud cases in 2023. CAC Registrar-General Hussaini Magaji has stated that the registration is legally backed and aims to protect businesses, customers, and the Nigerian economy at large.
What You Should Know
- CAC’s enforcement may involve shutdowns and legal consequences for non-compliant PoS operators.
- AMMBAN has taken the matter to court, challenging the registration mandate.
- The move is part of efforts to combat fraud and protect the fintech industry in Nigeria.
