CAC To Sanction POS Operators For Failure To Register Their Businesses As September 5 Deadline Lapses

The Corporate Affairs Commission (CAC) has announced that it will take action against Point of Sales (PoS) businesses that have failed to register their operations after the September 5 deadline.

The Commission expressed concerns that non-compliant PoS operators might be involved in illegal activities, prompting the need for stricter enforcement.

In a public notice issued on Friday, September 6, the CAC emphasized that it is collaborating with law enforcement agencies and other relevant stakeholders to impose sanctions on unregistered PoS operators.

These sanctions may include shutting down their businesses and other severe legal consequences.

The notice reminded the public that the 60-day registration window, which was announced in newspapers on July 7, 2024, has now closed. The CAC acknowledged that while some PoS operators have complied with the registration directive, many others have not.

The Commission commended those who adhered to the guidelines but criticized those who failed to comply, suggesting that their non-compliance could be linked to unethical practices.

The notice stated: “Recalcitrant operators have refused to adhere to the advice for formalization due possibly, to engagements in unwholesome activities or for some reasons best known to them.

We are to make it clear that the Commission is working with Law Enforcement Agencies and other relevant stakeholders to deploy comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal Consequences.”

In response, fintech business owners, represented by the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), have challenged the CAC’s directive in court. They argue that the mandatory registration requirement is illegal, asserting their right to operate without being compelled to register under the CAC’s regulations.