The Corporate Affairs Commission (CAC) said it has commenced the process of taking drastic actions including shutting down Fintech operators also known as Point of Sales (POS) businesses that have failed to register their businesses as its September 5 deadline lapsed.<\/p>\n
CAC stated this in a public notice released on Friday\u00a0on their official X platform.<\/p>\n
According to the commission there has been\u00a0inadequate compliance with its directive, it continued by saying that those\u00a0who decided not to register may be engaging in\u00a0\u201cunwholesome activities.<\/em>\u201d<\/b><\/strong><\/p>\n This development comes as the fintech business owners under the aegis of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) have challenged the CAC\u2019s registration directive in court even as they insist the mandatory registration was illegal.<\/p>\n \u201cThe 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.\u00a0<\/i><\/em><\/p>\n \u201cThe 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\u2019s directive are commended for their positive attitudes.\u00a0<\/i><\/em><\/p>\n \u201cRecalcitrant 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.\u00a0<\/i><\/em><\/p>\n \u201cWe 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.\u201d\u00a0<\/i><\/em>\u00a0T<\/i><\/em>heir notice stated.<\/p>\n Earlier in May, the CAC announced that POS agents of major fintechs in Nigeria including OPay, Palmpay, and Moniepoint, among others, had been given a deadline of July 2024 to register their business.<\/p>\n The Registrar-General of the CAC, Hussaini Magaji, who announced this said this was the agreement with the POS operators after a meeting in Abuja.<\/p>\n According to him, the registrations is also in line with the legal requirements and the directives of the Central Bank of Nigeria (CBN).<\/p>\n The Commission, however, later extended the deadline by 60 days to September 5, 2024. The extension came with a warning that any operator that failed to meet the new deadline would face prosecution and risk losing the business.<\/p>\n Meanwhile, AMMBAN is insisting that the registration requirements imposed by CAC violated the provision of the Companies and Allied Matters Act, Laws of the Federation of Nigeria, 2004, which \u201cexplicitly states that the commission has no jurisdiction over individuals not operating as a company.<\/p>\n According to the national general secretary of AMMBAN, Oluwasegun Elegbede, the matter is already in court and the court has scheduled this September for hearing.<\/p>\n \u201cThe court will have to intervene in the interpretation of the quoted section of the CAMA if individuals operating as a sub-agent (likened to a bank branch) must register with CAC,\u201d<\/i><\/em>\u00a0Elegbede added.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" The Corporate Affairs Commission (CAC) said it has commenced the process of taking drastic actions including shutting down Fintech operators also known as Point of Sales (POS) businesses that have failed to register their businesses as its September 5 deadline lapsed. CAC stated this in a public notice released on Friday\u00a0on their official X platform. […]<\/p>\n","protected":false},"author":27,"featured_media":47465,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[59],"class_list":["post-47461","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-featured"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/47461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=47461"}],"version-history":[{"count":1,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/47461\/revisions"}],"predecessor-version":[{"id":47466,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/47461\/revisions\/47466"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/47465"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=47461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=47461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=47461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}