The Federal Government, through the Corporate Affairs Commission (CAC), has set a two-month deadline for Point of Sale (PoS) companies to register their agents, merchants, and individuals with the commission.
This directive aligns with legal requirements and the directives of the Central Bank of Nigeria (CBN).
The decision was reached during a meeting between Fintechs and the Registrar-General of the CAC, Hussaini Ishaq Magaji, in Abuja on Monday.
The registration deadline, which expires on July 7, 2024, aims to safeguard the businesses of Fintech customers and strengthen the economy.
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The measure is backed by Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, as well as the 2013 CBN guidelines on agent banking.
The CAC emphasized that the timeline for registration is not targeted at any specific groups or individuals but is genuinely aimed at providing protection for businesses.
This directive comes amidst concerns over frequent fraud incidents involving POS terminals and the CBN’s plan to halt trading in cryptocurrency or any virtual currency.
POS terminals accounted for a significant percentage of fraud incidents in 2023, according to a report by the Nigeria Inter-Bank Settlement System Plc.
Last week, the CBN instructed major fintech firms to cease onboarding new customers and warned against trading in cryptocurrency on their apps.
This move was linked to an ongoing audit of the Know-Your-Customer process of fintechs amid concerns about money laundering and terrorism financing.
The statement further mentioned that several speakers from the fintech industry pledged to collaborate with the commission to ensure the smooth implementation of the directive.
However, they emphasized the need for adequate and collective sensitization to ensure the effectiveness of the exercise.
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