Nigerian Banks and Fintech Companies to Freeze PoS Operator Accounts Lacking CAC Registration by July 7, 2024
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Nigerian banks and fintech companies are preparing to block the accounts of Point of Sale (PoS) operators who fail to register their businesses with the Corporate Affairs Commission (CAC) by July 7, 2024.
This follows a directive from the Central Bank of Nigeria (CBN) issued on April 30, 2024, which mandates all non-individuals on the agent banking authorization to register their businesses with the CAC in accordance with Section 863 of the Companies and Allied Matters Act (CAMA) 2020.
The CBN directive requires PoS terminals, whether operated by agents, merchants, or individuals, to be registered with the CAC before commencing business operations. In response, the CAC released a statement titled “Enforcement of Compliance with CBN Directive on Registration Before Onboarding,” urging banks to ensure registration compliance by the July 7, 2024, deadline. The Registrar-General emphasized the importance of this requirement for economic growth.
With the deadline fast approaching, PalmPay, a prominent fintech company, has notified PoS operators within its network to adhere to the directive. Umuteme Enakeno, head of marketing and communication at PalmPay, warned that accounts will be frozen if operators fail to comply.
“PalmPay fully supports the CAC’s directive. To provide a seamless experience for our customers, we have integrated the registration portal with our Business App. Ensure that all necessary documents and information are provided accurately before submitting their applications,” Enakeno stated.
PalmPay customers are urged to update their accounts with business details once they receive their CAC certificates to reflect their new corporate status. “We urge all PalmPay Business customers to submit or register their CAC before the deadline. Failure to do so means that the account would be frozen,” Enakeno added.
This move underscores the importance of regulatory compliance for PoS operators in Nigeria, as the CBN and CAC aim to streamline business operations and enhance economic stability.
Source: Legit
