AMMBAN Berates CAC Over Plans to Enforce POS Operators’ Registration

Association of Mobile Money and Bank Agents of Nigeria (AMMBAN) has berated the Corporate Affairs Commission (CAC) over its move to enforce the directive that point of sale (POS) terminal operators should register with it by September 5, 2024.

Fasasi Atanda, National President of AMMBAN, told Nigeria CommunicationsWeek that the action of CAC is tantamount to contempt of court as the case is in court.

“AMMBAN and CAC are in court over this issue of mandatory registration with CAC. We are surprised that CAC lawyer who is a Senior Advocate of Nigeria can be going the part of contempt of court as the court has ordered that the status quo be maintain.

“Our lawyer has notified the court about this development and have written to CAC that their action of threatening to enforce their earlier directive is pre-judicial. We have also notified law enforcement agencies about the implication of adhering to the request of CAC,” he said.

In a statement released last week by the Commission, the CAC said that it is now working closely with law enforcement agencies and other relevant stakeholders to develop and implement a robust enforcement and sanction framework.

This framework, according to the CAC, will not only target the shutdown of non-compliant businesses but could also involve more severe legal actions against defaulters.

The Commission expressed concern over the low level of compliance by POS operators, despite the large number of such businesses operating across the country.

They also commended those operators who adhered to the directive, noting their responsible approach to formalizing their operations.

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

However, the Commission criticized what it termed “recalcitrant operators,” many of whom have either refused or failed to comply with the registration requirement.

The CAC suggested that some of these operators might be engaging in “unwholesome activities” or have other undisclosed reasons for resisting formalization.

“As the CAC moves towards enforcement, it urges all unregistered POS operators to take immediate steps to formalize their businesses or face the consequences of their inaction,” the statement concluded.

Recall that in May 2024 the CAC announced that PoS agents have been given a deadline of July 7, 2024, to register their business but later extended it to September 5, 2024.