By Ken Afor
The Corporate Affairs Commission (CAC) has stepped in to enforce the directive given by the Central Bank of Nigeria (CBN), mandating all Point of Sale (PoS) operators, including fintech companies like Opay, Moniepoint, and PalmPay, to register their businesses with the commission by July 7, 2024.
This enforcement was conveyed during a meeting held in Abuja on Tuesday, May 7, between representatives of financial technology companies (Fintechs) and the Registrar-General/Chief Executive Officer of the CAC, Hussaini Magaji (SAN).
The New Diplomat reports that during the meeting, Magaji emphasised that the two-month timeline given to PoS operators to register their agents, merchants, and individuals with the CAC is in accordance with legal requirements and instructions from the CBN.
He stressed the importance of adhering to this deadline, to ensure compliance with regulatory frameworks governing the fintech industry.
Failure to comply with this directive could potentially lead to penalties or other regulatory actions.
Meanwhile, in a statement released on Tuesday by the CAC, it recalled a memo issued by the apex bank, directing all non-individuals on the Agent Banking Authorisation, to register their businesses in line with Section 863 of the Companies and Allied Matters Act (CAMA) 2020.
The statement reads: “Enforcement Of Compliance With Central Bank BANK Of Nigeria’s Directive On Registration Before Onboarding:
The Corporate Affairs Commission (CAC) has instructed banks to ensure registration of their customers in the agent banking platform on or before July 7, 2024.
“In a letter to all affected banks, the Registrar-General/CEO, CAC Hussaini Magaji (SAN), said the instruction is in line with Section 863(1) of CAMA and the CBN guidelines for Agent Banking, 2013.
“The Central Bank of Nigeria (CBN) had earlier, through 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 Point of Sale (PoS) terminals whether as Agent, Merchant or Individual to register with CAC before commencement of business.
“The Registrar-General therefore enjoined the banks to ensure maximum compliance with the requirements of the law to ensure economic growth.
Addressing participants at the event, Magaji stated that the two-month deadline for PoS operators to register their agents, merchants, and individuals with the commission is in accordance with legal requirements and instructions from the Central Bank of Nigeria.
He emphasised that this action is also backed by Section 863, Subsection 1 of the Companies and Allied Matters Act, (CAMA) 2020, and the 2013 CBN guidelines on agent banking.
Magaji explained that the timeline for registration, which will expire on July 7, 2024, is not targeted at any specific groups or individuals but is aimed at protecting businesses.
He stressed the importance of adhering to this timeline, to ensure compliance with the relevant regulations.
Several speakers from the fintech industry expressed their commitment to collaborate with the commission, to ensure a smooth implementation of this directive.
However, some of them stressed the need for adequate and collective sensitisation, to ensure that the exercise achieves the desired results.
The Special Adviser to the President on ICT Development and Innovation, Tokoni Peter, pledged to facilitate the process smoothly in line with the Renewed Hope Initiative of the present administration.
Representatives from various fintech companies, including Opay, Momba, Palmpay Ltd, Pay Stack, Fair Money MFB, Monie Point, and Teasy Pay, who were present at the event, signed a document to support the project.
