The Corporate Affairs Commission (CAC) has issued a stern reminder to Point of Sale (POS) operators across the nation regarding the expiration of their business registration deadline, originally set for July 7, 2024, and ending on September 5, 2024.
In a statement released on Friday, the CAC expressed concern over the low compliance rate among POS operators, despite their large numbers across the country.
While acknowledging the efforts of operators who have taken steps to formalize their businesses, the CAC praised their “positive attitudes” toward compliance.
However, the commission expressed disappointment at the significant number of operators who have failed to meet the registration requirement.
The statement noted that “some recalcitrant operators have refused to comply with the registration advice, possibly due to involvement in unwholesome activities or for reasons best known to them.”
The CAC reiterated its collaboration with law enforcement agencies and other relevant stakeholders to enforce a strict framework of penalties for non-compliant businesses.
These enforcement measures could result in the closure of unregistered businesses and further legal consequences.
“We are to make it clear that the commission is working with law enforcement agencies and other relevant stakeholders to deploy a comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal consequences,” the statement read in parts.
It should be recalled that the Federal Government, through the CAC, had set a two-month deadline for POS operators to register their agents, merchants, and individuals in compliance with legal requirements and directives from the Central Bank of Nigeria (CBN).
This directive was issued in response to an increase in fraud cases involving POS terminals and CBN’s efforts to crack down on cryptocurrency trading and other virtual currencies.
A report by the Nigeria Inter-Bank Settlement System Plc revealed that POS terminals were implicated in 26.37% of fraud cases in 2023.
The CAC emphasized that this registration initiative is aimed at reducing fraud, combating kidnapping, and addressing the payment of ransoms within the POS system.
