CAC Warns Of Sanctions For POS Operators Failing To Register By September 5

CAC Warns Of Sanctions For POS Operators Failing To Register By September 5

The Corporate Affairs Commission (CAC) has disclosed that it is set to take action against Point of Sales (PoS) businesses that have failed to register their businesses following the passing of the September 5 deadline earlier announced.

The CAC alleged that POS businesses that have failed to register may be involved in illegal activities.

The Commission added that it is working with law enforcement agencies and other relevant stakeholders to deploy sanctions such as possible shutdown and other severe legal consequences against POS operators who have not complied with the registration directive.

The Commission stated this in a public notice released on Friday, 6th September.

The public notice reads: “The Corporate Affairs Commission wishes to remind the general public particularly Fintech operators also known as Point of Sale (POS) operators, that the 60-day deadline given in daily newspaper publications of July 7 2024, for the registration of such businesses expired on September 5, 2024.

“The Commission notes inadequate compliance with the directive for formalization when viewed from the background of the large number of POS operators in the country. Those who have taken steps to formalize in line with the Commission’s directive are commended for their positive attitudes.

“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.”

Meanwhile, the affected fintech business owners under the aegis of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) have challenged the CAC’s registration directive in court even as they insist the mandatory registration was illegal.