Following the expiration of a 60-day deadline on September 5, 2024, the Corporate Affairs Commission (CAC) has announced its plans to collaborate with law enforcement agencies to enforce compliance to Point of Sale (POS) operators to register their businesses.
Deadline Expired, Enforcement Imminent
The registration directive, issued on July 7, 2024, aimed to formalize the operations of POS operators and ensure compliance with regulatory requirements. Despite widespread publicity and ample time given, a significant number of operators have failed to meet the deadline.
The Commission has expressed disappointment with the low level of compliance, particularly considering the proliferation of POS businesses across Nigeria. While commending those who have already registered, the Commission has criticized “recalcitrant operators” who have either refused or neglected to comply.
Potential Legal Consequences
The Commission has made it clear that it will not tolerate non-compliance. It noted that it is working with law enforcement agencies to develop a robust enforcement framework that may include not only the shutdown of non-compliant businesses but also more severe legal actions.
Related: PoS Operator Registration Deadline Extended by CAC: Relief or Respite?
The CAC has raised concerns about the potential for unregistered POS operators to engage in “unwholesome activities” or have other undisclosed reasons for resisting formalization. By registering their businesses, operators can demonstrate their commitment to operating legally and transparently.
Background on Registration Rationale
The registration requirement for agent banking was introduced in May 2024, following a meeting between the CAC and representatives of major fintech companies. The directive was aimed at safeguarding the interests of both fintechs and their customers, strengthening the economy, and combating financial fraud.
The Commission had initially given the operators a deadline of July 7, 2024, to register their businesses. However, in response to requests from operators in remote areas, the Commission granted a 60-day extension, extending the deadline to September 5, 2024.
CAC Call to Action for Unregistered Operators
The CAC is urging all unregistered POS operators to take immediate steps to formalize their businesses. Failure to comply with the registration requirement could result in significant legal consequences.
The Commission intensified crackdown on unregistered agent operators is a clear indication of the Commission’s commitment to ensuring compliance with regulatory requirements and protecting the integrity of the financial sector in Nigeria. By registering their businesses, POS operators can demonstrate their commitment to operating legally and transparently, while also avoiding potential legal consequences.
