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Reps to invite CBN, Banks over unverified POS operators

On Wednesday, the House of Representatives resolved to summon Central Bank Governor Olayemi Cardoso and CEOs of commercial banks to address the issues caused by a lack of proper documentation for Point of Sale users across the country.
During the plenary session, John Okafor, representing the Ehime/Mbano/Uboma/Obowo Federal Constituency in Imo State, introduced a motion that led to this judgment.

While lobbying his colleagues to approve the resolution, Okafor emphasized the growing issues created by unauthorized POS users in Nigeria.

He added that fraudulent operations inside the financial system have been linked to some POS users, highlighting the importance of addressing these concerns in order to combat illegal practices and defend the integrity of the country's financial transactions.

He stated, "The House is aware that undocumented POS transactions provide an opportunity for illegal operations such as identity theft, money laundering, and unauthorized transactions.

"Enforcing the documentation of users' identities will greatly lower the frequency of fraud and improve the security of financial transactions in Nigeria. The House understands that accurate documentation of POS users' identities promotes responsibility among operators and users. This transparency will allow us to trace transactions back to the individuals involved and hold them accountable for criminal activity."

In a sharp critique of the Central Bank of Nigeria, the APC senator accused the apex bank of regulatory bias and failing to adequately enforce due process through the appropriate regulatory organizations.

He encouraged rapid action to address the problem, underlining the need to "shield Nigerians from the hands of criminals exploiting the POS system."

"Establishing a system for verifiable documentation of POS users' and recipients' identity aligns with the national and international financial regulatory requirements to prevent financial crimes and ensure compliance with anti-money laundering and know your customer regulations," according to him.

Following overwhelming support for the motion, Speaker Tajudeen Abbas, who presided over plenary, directed the House Committees on Digital and Electronic Banking, Finance, Banking Regulations, and Financial Crimes to invite the CBN Governor and Group Managing Directors of all Commercial Banks and Other Financial Institutions that use POS services to appear before them.

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