The Corporate Affairs Commission (CAC) has issued a strong reminder to Point of Sale (POS) operators across Nigeria, highlighting that the deadline for their mandatory business registration, initially set on July 7, 2024, expired on September 5, 2024. The CAC expressed concerns over the low compliance rate among operators, despite the large number of POS businesses operating in the country.
In a statement released on Friday, the commission acknowledged the operators who have adhered to the directive, praising their “positive attitudes” towards formalizing their businesses. However, the CAC voiced serious concern over the significant number of POS operators who have yet to comply.
The statement pointed to possible reasons behind the non-compliance, suggesting that “recalcitrant operators have refused to adhere to the advice for formalisation due possibly to engagements in unwholesome activities or for some reasons best known to them.”
To address the situation, the CAC announced its intention to collaborate with law enforcement agencies and other stakeholders to implement a robust enforcement and sanction framework. This initiative may include shutting down non-compliant businesses and imposing severe legal consequences on operators who fail to meet the registration requirements.
“We are to make it clear that the commission is working with law enforcement agencies and other relevant stakeholders to deploy a comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal consequences,” the statement read.
The Nigerian government, through the CAC, had previously set a two-month window for POS companies to register their agents, merchants, and individual operators with the commission. This directive aligns with the legal requirements and instructions from the Central Bank of Nigeria (CBN). The registration push was prompted by the rise in fraud cases involving POS terminals, as well as CBN’s broader efforts to clamp down on illicit financial activities, including the trade in cryptocurrencies and other virtual currencies.
A report from the Nigeria Inter-Bank Settlement System Plc (NIBSS) highlighted that POS terminals were involved in 26.37% of all fraud incidents in 2023. The CAC hopes that by mandating formal registration, it can reduce fraud, improve transparency within the system, and contribute to efforts to combat other criminal activities, such as kidnapping and ransom payments.
The CAC’s crackdown on non-compliant POS operators serves as a reminder of the importance of regulatory adherence for businesses in Nigeria, especially in the face of growing security concerns tied to financial transactions.
Source: Punch Newspaper
For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, Online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd. Visit us at www.innerkonsult.com or reach out via WhatsApp at +2348038460036. You can also find us at our offices in Lagos or Ogun State, Nigeria.
