CAC condemns poor registration by POS operators

The Corporate Affairs Commission has issued a stern reminder to Point of Sale operators across the country that the deadline for their business registration, initially announced on July 7, 2024, expired on September 5, 2024.

In a statement on Friday, the CAC expressed concern over the inadequate compliance with the directive, despite the large number of POS operators in the country.

However, CAC commended operators who have taken steps to formalize their businesses, praising their “positive attitudes” towards compliance.

The commission noted with concern the significant number of operators who have not adhered to the directive.

According to the statement, “Recalcitrant operators have refused to adhere to the advice for formalisation due possibly to engagements in unwholesome activities or for some reasons best known to them.”

The CAC emphasised that it was working in collaboration with law enforcement agencies and other relevant stakeholders to implement a comprehensive enforcement and sanction framework.

The measures may include the shutdown of non-compliant businesses and other severe legal consequences.

“We are to make it clear that the commission is working with law enforcement agencies and other relevant stakeholders to deploy a comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal consequences,” the statement read in parts.

Recall that the Federal Government through the Corporate Affairs Commission had previously set a two-month deadline for POS companies to register their agents, merchants, and individuals with the commission.

It said this complied with legal requirements and the directives of the Central Bank of Nigeria.

This directive was issued in response to a rise in fraud incidents involving POS terminals and CBN’s plans to prohibit trading in cryptocurrencies and other virtual currencies.

A report from the Nigeria Inter-Bank Settlement System Plc revealed that POS terminals were involved in 26.37 per cent of fraud incidents in 2023.

The CAC stated that the registration initiative aims to reduce fraud within the system, as well as combat kidnapping and the payment of ransoms.