CAC mulls shutdown of POS operators for ’noncompliance’ with registration directive

The Corporate Affairs Commission (CAC) says point of sale (POS) operators are at risk of being shut down for refusing to register their businesses before the deadline.
On May 6, the CAC and financial technology (fintechs) companies had agreed to a two-month timeline to register their agents and merchants.
The commission issued a deadline of July 7 for the exercise. CAC, on July 7, extended the registration deadline to September 5.
The 60-day extension was to allow sole agents, super agents, and agents, to register.
Speaking in a statement on Friday after the expiration of the deadline, the agency expressed disappointment that a significant number of operators failed to register their businesses — falling short of the expected compliance levels.
The commission said those who refused to comply with the directive would face the law.
“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 60-day newspaper publications of July 7 2024, for the registration of such businesses expired on September 5, 2024,” the agency said.
“The commission notes inadequate compliance with the directive for formalization when viewed from the background of a large number of POS operators in the country.
“Those that have taken steps to formalize in line with the Commission’s directive are commended for their positive attitudes.”
The agency said 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,” CAC added.
The commission also said, “the sanction framework, may include not only possible shutdown but other severe legal consequences”.