The Central Bank of Nigeria has given a 60-day deadline for 1.9 million PoS operators in the country to register with the CAC.
The Central Bank of Nigeria (CBN) has given a 60-day ultimatum for Point of Sale (PoS) operators to register with the Corporate Affairs Corporation (CAC). This decision was made during a meeting between Fintechs and the Registrar-General CAC, Hussaini Ishaq Magaji, in Abuja.
There are currently over 1.9 million PoS terminals deployed nationwide, as reported by the Nigeria Inter-Bank Settlement System.
The CAC emphasized that the registration requirement aims to protect the businesses of Fintech customers and strengthen the economy, in accordance with Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020, and the 2013 CBN guidelines on agent banking.
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The deadline for registration is July 7, 2024, and it is intended to provide business protection without targeting specific groups or individuals.
This directive follows increased fraud incidents involving POS terminals and the CBN’s plans to restrict trading in cryptocurrency or any virtual currency. POS terminals accounted for 26.37% of fraud incidents in 2023, according to a report by the Nigeria Inter-Bank Settlement System Plc.
Additionally, major fintech firms like Kuda, Opay, PalmPay, and Moniepoint have been instructed by the CBN to warn customers against cryptocurrency trading and freeze accounts engaging in such activities. This move is part of an ongoing audit of Know-Your-Customer processes amid concerns about money laundering and terrorism financing.
Fintech industry speakers pledged to collaborate with the commission to ensure smooth implementation of the directive, emphasizing the need for comprehensive sensitization to achieve desired results.
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