- The Corporate Affairs Commission has reminded the public, particularly fintech and Point of Sale (PoS) operators, that the 60-day deadline from July 7, 2024 to register their businesses expired on September 5, 2024.
- The authority warns that it is working with law enforcement agencies and other relevant stakeholders to deploy a comprehensive enforcement and sanction framework. Those found at fault may face penalties, including possible shutdowns and other “severe” legal consequences.
Commending the businesses that have complied with the directive, the commission noted inadequate compliance given the large number of PoS operators in the country.
While the commission did not disclose the number of businesses that complied, the directive applies to the up to 1.9 million PoS agents who intend to continue operating in the country.
“Recalcitrant operators have refused to adhere to the advice for formalisation, possibly due to engagement in unwholesome activities or for reasons best known to them,” the authority said.
The directive for PoS operators to register with the Corporate Affairs Commission was issued in May 2024, in a bid to reduce fraud and encourage transparency.
To facilitate this directive, the CAC established a facility for the bulk registration and entry of PoS agents into its database to accommodate requests from operators.
Moreover, the September 5, 2024 deadline was not the first. Initially, a 60-day period was provided for registration until July 7, 2024, but the deadline was extended. At the time of the extension, the authority also warned that those who missed the new deadline could face prosecution and risk losing their businesses.
This directive by the Federal Government, mandating PoS operators to register with the CAC, followed a fraud report by the Nigeria Inter-Bank Settlement System Plc (NIBSS), which revealed that PoS terminals accounted for 26.37% of fraud incidents in 2023.
One of the entities that has suffered PoS related fraud is Flutterwave, a payment services provider. In October 2023, Flutterwave discovered that several PoS device merchants had abused their access and performed illegal transfers on its platform due to a "technical glitch."
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