PoS Operators to Sue CAC Over Registration Order as Agency Insists on July Deadline

PoS Operators to Sue CAC Over Registration Order as Agency Insists on July Deadline

  • PoS operators have disclosed plans to take legal action against the Corporate Affairs Commission in court over its registration directives
  • The operators say the CAC has no powers to mandate them to register their businesses as they can operate as individual agents
  • The CAC agreed with financial technology companies to register their agents and merchants by July 2024

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Point of Sale (PoS) operators plan to sue the Corporate Affairs Commission (CAC) over the mandatory registration order.

CAC and financial technology companies agreed on May 6, 2024, to a two-month deadline to register their agents, merchants, and individuals with the agency.

PoS operators take action against FG
PoS operators move to sue CAC over regsistration deadline Credit: Novatis
Source: Getty Images

CAC sets deadline to register PoS businesses

The commission set the deadline for registration on July 7, 2024.

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CAC said the action is supported by Section 863(1) of the Companies and Allied Matters Act (CAMA) 2020 and the 2013 directives of the Central Bank of Nigeria (CBN) on agent banking.

The CAC said the registration aims to protect the businesses of fintechs and customers and boost the economy.

PoS operators fault CAC orders

According to reports, Elegbede Oluwaseun, the national general secretary of the Association of Mobile Money and Bank Agents in Nigeria (AMMAN), said the operators have opted to take legal action to challenge the legality of the order.

He said the CAC has no jurisdiction over individuals not operating as a company.

Oluwaseun said:

“In CAMA, only a non-individual agent is required to register with CAC. For example, if your name is John Doe, you are not liable for CAC registration and you can get the reference from CAMA 2022, section 18 (2).”

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The AMMBAN secretary said the CBN policy recognises both individual and non-individual agents.

He said an individual operating under their name is legitimate for conducting business in Nigeria beyond PoS operations.

He said the agents will go to court to challenge the CAC order.

The move comes amid plans for police to allegedly begin arresting PoS operators not registered with the CAC.

The Federal Government has pledged that security agencies will take action against Point-of-Sale (PoS) operators who do not comply with the directive to register with the Corporate Affairs Commission by July 7, 2024.

Hussaini Magaji, the Registrar-General of the CAC, announced this during the formal launch of the CAC registration for agents and fintech merchants in Abuja on Wednesday, May 9, 2024.

EFCC Calls Out PoS operators for empty ATM machines

Legit.ng earlier reported that the Economic and Financial Crimes Commission (EFCC) has accused banks of working with point-of-sale (POS) operators to limit cash availability at automated teller machines (ATMs).

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Hauwa Garba Ringim, the Acting Zonal Director of the Ibadan Zonal Command of the EFCC, ACE, disclosed this while meeting with bank Compliance Officers in Oyo State.

According to Ringim, it is illegal for POS operators to possess large amounts of cash from banks at the expense of ATMs.

Source: Legit.ng

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