The CAC is giving a last warning to unregistered PoS operators, urging them to register and avoid penalties for non-compliance.
Nigeria’s Point of Sale (PoS) operators have been given a final warning by the Corporate Affairs Commission (CAC), stating that the deadline for business registration has expired on September 5, 2024. Initially scheduled for July 7, 2024.
The CAC has recently released a statement expressing apprehension towards the low rate of compliance with registration regulations by PoS operators, despite their abundance in the country. The commission recognized and applauded those who have successfully completed the registration process for exemplifying commendable proactivity.
Despite this, the CAC conveyed its disappointment towards numerous operators for failing to comply with the directive. The statement emphasized that “certain operators have disregarded the formalization procedure, potentially as a result of their involvement in dubious activities or undisclosed motives.”
In order to tackle this problem, the CAC is working with law enforcement and other pertinent organizations in enforcing a rigorous policy of sanctions. This may entail closing down non-conforming enterprises and imposing severe legal consequences.
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The CAC, acting on behalf of the Federal Government, stipulated a two-month timeframe for PoS operators to enroll their merchants, individual operators and agents in compliance with legal regulations and directives from the Central Bank of Nigeria.
This initiative was initiated due to an upsurge in fraud cases associated with PoS terminals as well as impending prohibition by CBN on cryptocurrency trading.
The Nigeria Inter-Bank Settlement System Plc reported that a significant 26.37% of fraud incidents in the year 2023 were attributed to PoS terminals.
To tackle issues regarding unlawful activities such as kidnapping and ransom payments, the CAC’s registration scheme seeks to curb fraudulent transactions effectively.
