Nigerian banks and fintech companies are preparing to block the accounts of Point of Sale (PoS) operators who have not registered their businesses with the Corporate Affairs Commission (CAC) by the impending deadline of July 7, 2024.
This move follows a directive from the Central Bank of Nigeria (CBN), issued on April 30, 2024, which mandates that all non-individuals involved in agent banking must immediately register their businesses with the CAC, in accordance with Section 863 of the Companies and Allied Matters Act (CAMA) 2020.
The CBN’s directive requires that all PoS terminals, whether operated by agents, merchants, or individuals, must be registered with the CAC before they can commence business. This measure aims to ensure regulatory compliance and enhance the transparency and integrity of the financial system.
In response to the CBN’s announcement, the CAC released a statement titled “Enforcement of Compliance with CBN Directive on Registration Before Onboarding,” which demands that banks enforce this registration requirement by the July 7 deadline.
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As the deadline approaches, fintech companies like Palmpay are taking proactive steps to ensure compliance within their networks.
Palmpay has instructed PoS operators under its umbrella to adhere to the CBN directive. Umuteme Enakeno, the head of marketing and communication at Palmpay, emphasized that failure to comply will result in accounts being frozen after the deadline.
This enforcement underscores the importance of regulatory adherence in the rapidly evolving financial technology sector, aiming to foster a more secure and transparent business environment.
As the deadline looms, PoS operators are urged to take immediate action to register their businesses with the CAC to avoid disruptions to their operations.
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Point of Sale (PoS) operators have revealed their intention to pursue legal action against the Corporate Affairs Commission (CAC) in response to its recent registration directives.
The operators argue that the CAC lacks the authority to mandate the registration of their businesses, asserting their right to operate as individual agents without such obligations.