Registrar General of CAC warns Fintechs to register by July 7, 2023, emphasizing legal consequences for non-compliance
Magaji underscores the necessity for PoS operators to register with CAC, highlighting reduction of criminal activities as a key benefit
Hussaini Magaji (SAN), Registrar General of the Corporate Affairs Commission (CAC), has issued a stern warning. He states that all financial technology operators (Fintechs) must complete registration with the commission before July 7, 2023. He emphasizes that failure to do so constitutes a criminal offence under the law.
Magaji made this declaration during the commission’s formal inauguration of the registration center for Fintech agents and merchants in Abuja on Wednesday.
He emphasized, “According to the law and the guidelines stipulated by the Central Bank of Nigeria (CBN), Fintechs must register with the CAC when acquiring PoS machines. Therefore, any operation of PoS terminals without proper registration with the CAC is deemed unlawful in Nigeria, and offenders may face legal consequences, including imprisonment.”
“CAC is actively enforcing the legal provisions that require all legitimate businesses to register with the commission, whether as individuals, businesses, or merchants. PoS operators must adhere to this requirement, and our current actions aim to uphold the Companies and Allied Matters Act (CAMA),” he added.
Magaji clarified, “Initially, CAC was instructed to impose a penalty of N200 on unregistered PoS operators. However, in line with the president’s support for small businesses, we have decided not to impose penalties. Instead, we have set a deadline of July 7, 2024, for compliance, following extensive awareness campaigns since December.”
Regarding the benefits of registration, Magaji stated, “The registration of all PoS merchants and agents nationwide will significantly contribute to the reduction of criminal activities in the country. Instances of ransom payments via PoS terminals highlight the urgency of this registration process, as it will enable the identification of individuals whose machines are involved in criminal activities.”
He also announced the establishment of a 24-hour registration centre for Fintechs interested in manual registration. Additionally, the CAC has streamlined the registration process on its portal for Fintechs, ensuring swift issuance of certificates directly to their platforms.
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