By 
Nigerian banks and fintech companies are set to block the accounts of Point of Sale (PoS) operators who fail to register their businesses with the Corporate Affairs Commission (CAC) by July 7, 2024. This action follows a directive from the Central Bank of Nigeria (CBN) issued on April 30, 2024, which mandates all non-individuals on the agent banking authorization to register their businesses with the CAC, in accordance with Section 863 of the Companies and Allied Matters Act (CAMA) 2020.
The CBN directive requires that all PoS terminals, whether operated by agents, merchants, or individuals, must be registered with the CAC before commencing business operations. In response, the CAC released a statement titled “Enforcement of Compliance with CBN Directive on Registration Before Onboarding,” urging banks to ensure registration compliance by the July 7, 2024, deadline. The Registrar-General emphasized the significance of this requirement for economic growth.
With the deadline approaching, PalmPay, a leading fintech company, has alerted PoS operators within its network to adhere to the directive. Umuteme Enakeno, Head of Marketing and Communication at PalmPay, warned that accounts would be frozen if operators fail to comply.
“PalmPay fully supports the CAC’s directive. To provide a seamless experience for our customers, we have integrated the registration portal with our Business App. It is essential that all necessary documents and information are accurately provided before submitting applications,” Enakeno stated.
PalmPay customers are urged to update their accounts with business details once they receive their CAC certificates to reflect their new corporate status. “We urge all PalmPay Business customers to submit or register their CAC before the deadline. Failure to do so will result in account freezing,” Enakeno added.
This move highlights the importance of regulatory compliance for PoS operators in Nigeria, as the CBN and CAC aim to streamline business operations and enhance economic stability.
Comments