Reps Summon CBN Governor, Bank CEOs Over Unregistered PoS Operators
The House of Representatives has directed its relevant committees to invite the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, along with the Chief Executive Officers (CEOs) of all commercial banks and other financial institutions that use Point of Sale (PoS) terminals. This is in response to growing concerns over the lack of proper registration and documentation of PoS operators and recipients, which has led to various financial security challenges.
The resolution came after the adoption of a motion by Hon. John Okafor from Imo State, presented during Wednesday’s plenary session.
Okafor explained that the lack of proper documentation for PoS operators and fund recipients in Nigeria has created opportunities for fraudulent activities, including identity theft, money laundering, and unauthorized transactions. He stressed that addressing these issues is crucial to maintaining the integrity of financial transactions in the country.
He emphasized that undocumented PoS transactions present a major loophole for criminal activities, and that enforcing proper identity documentation for users would significantly reduce fraud and enhance the security of financial systems in Nigeria.
“Proper documentation of PoS users’ identities will promote accountability among operators and users. This transparency will allow authorities to trace transactions back to the individuals involved, holding them accountable for any illegal activities carried out through the PoS system and helping eliminate the criminal use of PoS terminals,” Okafor stated.
The lawmaker also pointed out the regulatory and enforcement challenges currently faced by relevant authorities in ensuring compliance with the due process. He urged for immediate intervention to prevent further criminal exploitation of the PoS system.
“The establishment of a verifiable system for documenting PoS users and recipients aligns with both national and international financial regulations, aimed at preventing financial crimes and ensuring adherence to anti-money laundering (AML) and know-your-customer (KYC) protocols,” Okafor added.
