CAC Moves to Crack Down on Non-Registered PoS Operators as Deadline Passes

The Corporate Affairs Commission (CAC) has initiated stringent enforcement measures against Point of Sale (PoS) businesses that missed the September 5 registration deadline. The CAC announced this development in a public notice issued Friday, citing insufficient compliance with its earlier directive.

The CAC emphasized that businesses failing to register might be involved in “unwholesome activities” and warned of potential shutdowns and severe legal consequences. The notice highlighted that the initial 60-day registration period, which began on July 7, 2024, ended without adequate compliance.

The Commission’s move comes amid ongoing legal challenges from the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), which argues that the CAC’s registration requirements are illegal. AMMBAN contends that the CAC’s directives violate the Companies and Allied Matters Act (CAMA) of 2004, which it claims does not grant the CAC jurisdiction over individuals not operating as companies.

The CAC had previously set the registration deadline for PoS operators affiliated with major fintechs such as OPay, Palmpay, and Moniepoint. Following the original deadline, the CAC extended the registration period by two months, with a stern warning of prosecution and potential business loss for those who did not comply.

The legal dispute, scheduled for a court hearing in September, will address whether individuals acting as sub-agents must register with the CAC.