The Central Bank of Nigeria (CBN) governor, MDs of commercial banks and other financial institutions have been tasked on POS operations
The House of Representatives has called for immediate measures to address the challenges posed by undocumented identities in Point of Sale (POS) transactions in Nigeria.
This is as it mandated its committees on digital and electronic banking, finance, banking regulations, and financial crimes to invite the governor of the Central Bank of Nigeria (CBN), the Group Managing Directors (GMDs) of all commercial banks and other financial institutions involved with POS services and provide lasting solutions to the challenges and report back within four weeks.
The motion, sponsored by Rep. John Okafor (APC, Imo), highlighted increasing cases of fraud, identity theft, and money laundering linked to the lack of verifiable documentation for POS operators and fund recipients.
Okafor emphasised that the absence of proper documentation for POS users creates loopholes that fraudsters exploit. These include identity theft, unauthorized transactions, and money laundering. He noted that enforcing the documentation of users’ identities would significantly reduce these crimes and enhance the security of financial transactions in Nigeria.
“There is an obvious regulatory bias and enforcement challenge regarding due process by the relevant bodies,” Okafor stated. He stressed the urgency of intervention to protect Nigerians from criminal activities tied to the use of POS.
He explained that establishing a system for verifiable documentation of POS operators and fund recipients aligns with national and international financial regulatory requirements with the objective of preventing financial crimes and ensuring compliance with anti-money laundering laws (AML) and know your customer (KYC) regulations.
Additionally, Rep. Okafor emphasised that implementing stringent identity verification measures will protect consumers and businesses from becoming vulnerable to fraudulent schemes carried out through POS transactions. This he said will build trust in the financial system and encourage greater participation in the growing cashless transactions system in Nigeria.
Okafor also observed that proper documentation would foster accountability and transparency in POS transactions, enabling authorities to trace and hold individuals accountable for illegal activities.
STAR Check: Nigerians, particularly, constituents of Ehime Mbano/Ihitte Uboma/Obowo federal constituency, can keep tabs on the legislative performance of Rep. Okafor throughout the 10th House here.
