Nigerian banks and fintech companies are set to block accounts of Point of Sale (PoS) operators yet to register their businesses with the Corporate Affairs Commission (CAC) before July 7, 2024.
TimesNow.com.ng earlier reported that the Central Bank of Nigeria, in a memo issued on April 30, 2024, directed all non-individuals on the agent banking authorisation to immediately take steps to register their businesses with the CAC in line with Section 863 of the Companies and Allied Matters Act (CAMA) 2020.
The directive made it mandatory for PoS terminals, whether agents, merchants, or individuals, to register with CAC before the commencement of business.
Following up on the CBN announcement, CAC released a statement titled ââEnforcement of Compliance with CBN Directive on Registration Before Onboarding” demanding that banks ensure registration on or before July 7, 2024.
Part of the statement reads:
With a few days left to the deadline, Palmpay, one of the fintech companies, has instructed POS operators in its network to comply with the directives.
According to Umuteme Enakeno, head of marketing and communication at PalmPay, failure to comply will result in accounts being frozen after the deadline.
He said:
In a related development, TimesNow.com.ng reported that PoS operators have disclosed plans to take legal action against the Corporate Affairs Commission in court over its registration directives.
The operators say the CAC has no powers to mandate them to register their businesses as they can operate as individual agents.
Proofreading by James Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
