POS operators face legal actions over noncompliance with registration

The Corporate Affairs Commission (CAC) has said point of sale (POS) operators are not only at risk of being shut down but also face legal actions for refusing to register their businesses before the deadline.

CAC said this in a statement on Friday after the expiration of the deadline.

On May 6, the Commission and financial technology (fintechs) companies had agreed to a two-month timeline to register their agents and merchants.

CAC issued July 7 as deadline for the exercise and further extended the registration deadline to September 5, which was to extension allow sole agents, super agents, and agents, to register.

The agency, however, expressed disappointment that despite the extension, a significant number of operators still did not register their businesses.

“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,” CAC 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.

“ 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.

“The sanction framework, may include not only possible shutdown but other severe legal consequences.”