CAC, EFCC to begin crackdown on unregistered POS operators

The Corporate Affairs Commission, CAC, and the Economic and Financial Crimes Commission, EFCC, have intensified efforts to tackle financial crimes linked to Point of Sale, POS, operations, with both agencies agreeing to strengthen collaboration and review their existing Memorandum of Understanding, MoU.

The move followed a courtesy visit by the Chairman of the CAC Board, Senator Ibrahim M. Ida, to the Executive Chairman of the EFCC, Olanipekun Olukoyede, at the anti-graft agency’s headquarters in Abuja on Thursday.

During the meeting, Senator Ida expressed concern over the growing number of unregistered POS operators across the country, revealing that only about 20 per cent of POS businesses are currently registered with the Corporate Affairs Commission despite legal requirements mandating such registration.

According to him, the low level of compliance poses significant risks to Nigeria’s financial system and creates opportunities for criminal elements to exploit the sector.

He noted that the Companies and Allied Matters Act (CAMA) 2020 as well as the Central Bank of Nigeria’s Agent Banking Regulations 2026 require all businesses operating under a business name to be duly registered with the CAC.

The CAC chairman warned that intelligence available to the commission indicates that proceeds of criminal activities, including ransom payments arising from kidnapping incidents, are in some cases routed through unregistered POS terminals.

He said the trend underscores the urgent need for stronger regulatory oversight and inter-agency cooperation to prevent the abuse of financial channels by criminal networks.

To address the challenge, Senator Ida proposed deeper collaboration between the two agencies in three key areas.

The first, he said, is enhanced data and intelligence sharing on suspicious companies and financial transactions that may aid investigations and enforcement actions.

Secondly, he advocated joint public sensitisation campaigns aimed at educating businesses and members of the public on corporate governance standards, registration requirements and the dangers of financial crimes.

The third area, according to him, is capacity-building programmes for staff of both agencies to equip them with the knowledge and skills needed to tackle emerging threats at the intersection of company regulation and economic crime.

Responding, EFCC Chairman Olanipekun Olukoyede acknowledged the growing concerns surrounding POS operations and their potential misuse by criminal elements.

He, however, disclosed that investigations by the commission show that a significant proportion of financial crimes in Nigeria are perpetrated through registered corporate entities.

According to him, more than 80 per cent of financial crimes investigated by the EFCC involve procurement fraud and the use of registered companies as vehicles for illicit transactions.

Olukoyede revealed that investigations into about 200 companies earlier referred to the EFCC by the CAC had produced major findings, highlighting the importance of collaboration between both institutions.

While agreeing that the regulation of POS operators remains a major challenge, the EFCC chairman stressed the need for urgent measures to protect the integrity of Nigeria’s financial system.

He subsequently called for a comprehensive review of the existing Memorandum of Understanding between the CAC and EFCC to strengthen cooperation, improve information sharing and facilitate more effective reforms.

The renewed partnership is expected to enhance monitoring of business activities, improve compliance among POS operators and help authorities track and prevent the use of financial channels for money laundering, kidnapping-related transactions and other economic crimes.

The development comes amid increasing scrutiny of Nigeria’s rapidly expanding POS sector, which has become a major channel for financial transactions, particularly in underserved communities where access to conventional banking services remains limited.