See new deadline for PoS to register businesses as banks get instructions to block accounts

• The Corporate Affairs Commission (CAC) has extended the deadline for Point of Sale (PoS) operators to register their businesses
• The directive requires all PoS operators to register with the CAC and obtain a Business Name or Limited Liability Company certificate
• PoS operators who fail to meet the new deadline risk having their accounts suspended or permanently closed

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Corporate Affairs Commission (CAC) has announced September 5, 2024 as the new deadline for Point of Sales agents, super agents, and sole agents registration to register their businesses or face the risk of losing their accounts.

The commission announced the new deadline in a statement signed by its management and posted on its X(formerly Twitter) page on Saturday, July 6, 2024.

Pos operators ask to register Photo credit: Bloomberg/contributor
Source: Getty Images

The new deadline is a 60-day extension from the previous date of July 7, 2024.

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CAC's POS registration directive

Legit.ng earlier reported that the Central Bank of Nigeria, in a memo issued on April 30, 2024, directed all non-individuals on the agent banking authorisation to immediately take steps to register their businesses with the CAC in line with Section 863 of the Companies and Allied Matters Act (CAMA) 2020.

The directive made it mandatory for PoS terminals, whether agents, merchants, or individuals, to register with CAC before the commencement of business.

Following up on the CBN announcement, CAC released a statement titled ‘‘Enforcement of Compliance with CBN Directive on Registration Before onboarding" demanding that banks ensure registration.

CAC new deadline for operators

In the statement announcing the new deadline, CAC said the extension gives operators, especially those in remote areas with network issues, more time to register and continue their businesses.

CAC said:

The Corporate Affairs Commission (CAC) wishes to notify Fintech Operators, also known as Point of Sales Operators, that the initial deadline of July 7, 2024, for the registration of sole Agents, Super Agents, and Agents has been extended by sixty days, now ending on September 5, 2024."This extension is to provide sufficient time for operators, particularly those in remote areas who may have encountered network challenges, to register and continue their businesses."Operators who fail or refuse to register by the new deadline risk losing their businesses and facing prosecution for aiding and abetting criminal activities."

POS operators not happy with CAC

In a related development, Legit.ng reported that Nigerian banks and fintech companies are set to block the accounts of PoS operators who fail to register their businesses.

The banks are now warning that failure to comply with the CAC registration requirement will result in account freezing.

Source: Legit.ng