Reps Set To Question CBN, Banks Over Unlicensed POS Operators

Reps Set To Question CBN, Banks Over Unlicensed POS OperatorsThe House of Representatives has resolved to summon the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, alongside the Chief Executive Officers of commercial banks, to address the growing concerns over unregistered Point of Sale (POS) operators across the country.....KINDLY READ THE FULL STORY HERE▶

This decision came after a motion presented by John Okafor, the representative for Ehime/Mbano/Uboma/Obowo Federal Constituency in Imo State, was debated and adopted during Wednesday’s plenary session.

In his motion, Okafor expressed alarm over the increasing number of POS operators lacking proper documentation, which has resulted in a surge of fraudulent activities. He pointed out that the absence of verified identities for POS users facilitates crimes such as identity theft, money laundering, and unauthorized transactions.

Okafor emphasized that enforcing identity verification for POS users would drastically reduce these fraudulent activities and bolster the security of financial transactions in Nigeria. He further argued that proper user documentation would promote transparency and accountability, making it easier to trace illicit transactions back to the perpetrators.

“The House is aware that undocumented POS transactions create a loophole for fraud, such as identity theft, money laundering, and unauthorized transfers,” Okafor said. “By ensuring that POS users are properly documented, we can significantly reduce fraud and enhance the security of financial transactions in Nigeria. Proper documentation will foster accountability, allowing us to trace transactions and hold those involved in illegal activities accountable.”

The lawmaker also criticized the CBN and other regulatory bodies for their failure to enforce necessary regulations to curb this growing issue. He urged immediate action to protect Nigerians from criminals exploiting the POS system.

Okafor recommended that a robust identity verification system be implemented to comply with both national financial regulations and international standards, such as anti-money laundering (AML) and Know Your Customer (KYC) protocols.

Following strong support for the motion, Speaker Tajudeen Abbas directed the House Committees on Digital and Electronic Banking, Finance, Banking Regulations, and Financial Crimes to invite the CBN Governor and the CEOs of commercial banks to discuss possible solutions. The committees have been given four weeks to report their findings back to the House.

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