Reps to invite CBN, Banks over unverified POS operators
The Central Bank Governor, Olayemi Cardoso, and commercial bank CEOs will be called by the House of Representatives on Wednesday to discuss the issues caused by the improper documentation of Point of Sale users across the country.
During the plenary session, John Okafor, who represented the Ehime/Mbano/Uboma/Obowo Federal Constituency in Imo State, sponsored a motion that led to this result.
Okafor emphasised the mounting difficulties brought about by the undocumented identities of POS users in Nigeria while urging his colleagues to endorse the measure.
He pointed out that some POS users have been connected to fraudulent operations within the financial system, highlighting the necessity of resolving these problems in order to stop illegal activity and safeguard the integrity of financial transactions in the nation.
He stated, "The House is aware that unrecorded point-of-sale transactions open the door for illegal operations like money laundering, identity theft, and unauthorised transactions.
"The frequency of fraud will be greatly decreased and the security of financial transactions in Nigeria will be improved by enforcing the documentation of users' identities." The House is aware that accurate identification documentation of POS users encourages user and operator accountability. This openness will make it easier to identify the parties to transactions and hold them responsible for any unlawful activity.
The APC senator criticised the Central Bank of Nigeria sharply, accusing the central bank of regulatory bias and ineffectively enforcing due process through the appropriate regulatory organisations.
He called for prompt action to resolve the matter, emphasizing the need to “shield Nigerians from the hands of criminals exploiting the POS system.”
In order to combat financial crimes and guarantee adherence to anti-money laundering and know your customer legislation, he stated that establishing a system for verifiable documentation of POS users' and beneficiaries' identities is in line with national and international financial regulatory requirements.
The House Committees on Digital and Electronic Banking, Finance, Banking Regulations, and Financial Crimes were instructed by Speaker Tajudeen Abbas, who presided over the plenary, to invite the CBN Governor and the Group Managing Directors of all Commercial Banks and Other Financial Institutions that use POS services to appear before them after the motion received overwhelmingly positive support.
