The House of Representatives has directed its relevant committees to summon the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, along with Chief Executive Officers (CEOs) of all commercial banks and other financial institutions utilizing Point of Sale (PoS) terminals.
The move is aimed at addressing the challenges arising from the undocumented identities of PoS operators.
This resolution followed the adoption of a motion presented by Hon. John Okafor from Imo State during plenary on Wednesday.
While presenting the motion, Okafor expressed concern over the growing risks posed by undocumented PoS operators, emphasizing the need to combat fraudulent practices and safeguard the financial system.
According to him: “The increasing challenges posed by the undocumented identities of PoS operators and fund recipients in Nigeria have created opportunities for fraudulent activities such as identity theft, money laundering, and unauthorized transactions within the financial system.”
Okafor noted that enforcing the proper documentation of users’ identities would help reduce fraud and strengthen the security of financial transactions.
“Proper documentation of PoS users’ identity fosters accountability among operators and users. This transparency will help trace transactions back to the individuals involved, holding them accountable for illegal activities conducted through the PoS system, and ensure a lasting end to the criminal use of PoS,” he stated.
Okafor further pointed out the gaps in regulation and enforcement by the relevant authorities, stressing the urgency of intervention to protect Nigerians from financial crimes enabled through the PoS system.
He added: “There is an obvious regulatory bias and enforcement challenge towards due process by the relevant regulatory bodies. Immediate intervention is necessary to avert this ugly situation and shield Nigerians from criminalities through the use of the PoS system.”
He argued that creating a verifiable system for documenting the identities of PoS users and recipients aligns with both national and international financial regulatory standards.
“Establishing a system for verifiable documentation of PoS users’ and recipients’ identity aligns with the national and international financial regulatory requirements, with the objective of preventing financial crimes and ensuring compliance with anti-money laundering (AML) and know your customer (KYC) regulations,” Okafor said.
