Breaking: CAC to shut down unregistered PoS businesses

After extending registration period, the Corporate Affairs Commission (CAC) has reiterated its call to Point of Sale (PoS) operators throughout Nigeria, reminding them that the deadline for mandatory business registration officially expired on September 5, 2024.

CAC in a public notice issued on Friday, voiced concern over the low compliance rate with the registration directive.

The commission hinted that those who have not yet registered may be engaged in “unwholesome activities,” raising concerns about the potential for illegal practices within the unregistered segment of the PoS operator community.

This reminder comes amid legal disputes from fintech operators under the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), who argue that the compulsory registration is unlawful.

The CAC noted with concern that despite the proliferation of PoS operators across the country, the level of compliance has been disappointingly low.

To enforce the directive, the CAC has indicated that it is working closely with law enforcement agencies and other relevant stakeholders to ensure that all PoS operators comply with the mandatory registration requirement.

The commission warned that non-compliant operators could face legal actions, including the potential shutdown of their operations.

The public notice reads, “The Corporate Affairs Commission wishes to remind the general public particularly Fintech operators also known as Point of Sale (POS) operators, that the 60-day deadline given in daily newspaper publications of July 7 2024, for the registration of such businesses expired on September 5, 2024.

“The Commission notes inadequate compliance with the directive for formalization when viewed from the background of the large number of POS operators in the country.

Those who have taken steps to formalize in line with the Commission’s directive are commended for their positive attitudes.

“Recalcitrant operators have refused to adhere to the advice for formalization due possibly, to engagements in unwholesome activities or for some reasons best known to them.

“We are to make it clear that the Commission is working with Law Enforcement Agencies and other relevant stakeholders to deploy comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal Consequences.”