“Here Are the Issues”: AMMBAN Speaks As Deadline Nears for Banks To Block Accounts PoS Accounts
- AMMBAN have reacted to the alert sent out by fintech companies to their customers, urging them to register their businesses with the CAC before the deadline
- The notices included threats to block the accounts of PoS operators who fail to comply with the CBN/CAC directives
- Fasasi Sarafadeen Atanda, the national president of AMMBAN, told Legit.ng that they are in court to challenge the directives while listing the issues
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Association of Mobile Money and Bank Agents of Nigeria (AMMBAN) will today, July 1, 2024, receive a ruling from the Federal High Court on a lawsuit against the Corporate Affairs Commission (CAC) over the mandatory registration of Point of Sale (POS) agents.
Source: Getty Images
Legit.ng had earlier reported that the CAC had given July 7, 2024, the deadline for POS operators to register with the commission.
Subsequently, banks sent notices to PoS operators in their network to adhere to the directives on or before the deadline or risk getting their accounts blocked.
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!
Palmpay, in a message signed by Umuteme Enakeno, head of marketing and communication, said:
"“PalmPay fully supports the CAC’s directive. To provide a seamless experience for our customers, we have integrated the registration portal with our Business App.
"Ensure that all necessary documents and information are provided accurately before submitting their applications.
"Customers must update their PalmPay Accounts with business details whenever they get the certificate to reflect their new corporate status.
"We urge all PalmPay Business customers to submit or register their CAC before the deadline. Failure to do so means that the account would be frozen."
AMMBAN lists the issues with CAC directive
In an exclusive chat with Legit.ng, Fasasi Atanda, national president of AMMBAN, said that the directive for PoS agents to register contradicts the current CBN agent banking regulations.
He noted that the current CBN agent banking regulations clearly allow individuals to be onboarded as agents under the sub-agent category.
His words:
"Here are AMMBAN issue with CAC mandatory registration. 1) Generalisation: There are 2 categories in the agent banking space. a) Non-individuals: Superagents, aggregators, agent network managers, etc
"They are all registered companies. This is the category mandated by CAMA and CBN to register. This also includes any agent operating with a business or company name such as John enterprises, Bako Ventures, Kolade and Co.
"Individual agents This includes sub-agents, agent point branches, etc This category is the real structure of financial inclusion. The poor pos agent in that rural area , garage, etc. CAMA and CBN do not mandate such categories because they are just traders like pepper/ garri sellers at the market.
"If it is not proper to ask garri seller to register with CAC, if it is illogical to ask bank branches (GTB Alaba branch, Zenith Bank Gombe branch etc ) to individually register with CAC, then it is abuse of power to drag ALL pos agents to do so."
The association also argued that CAC claims the registration is to curb fraud are deceitful because numerous registered businesses are committing fraud in Nigeria.
He added:
"There are no security features in the CAC registration process. Several businesses operate outside their registered addresses without CAC's knowledge because CAC address verification is manual and not live check enabled.
The objective appears to be to drive revenue through a registration fee of 15,000 naira per PoS agent and to tax the poor yearly through annual returns.
"It is unfair to force individuals to operate as companies because running as a company should be through self-determination .
"It is also important to note that agent banking is the most regulated industry because all PoS are duly registered by NIBSS, and every agent is profiled by their principal (financial institutions). Agents are already overtaxed through stamp duties, NIP charges, VAT charges, LGA, LCDA taxes, etc. Adding CAC annual returns is an attack on financial inclusion and should be stopped."
AMMBAN to face CAC in court
The AMMBAN president also revealed that the association is in court to seek an interpretation of CAMA and whether individuals should be forced to register with CAC.
Others include he said:
"To stop CAC from harassing agents through illegal enforcement move fixed for July 7. In conclusion, financial inclusion is a global agenda and agent banking (POS agency) has been so impactful by creating over 2 million jobs in Nigeria.
"Stakeholders are implementing several security measures such as AMMBAN agent identity registration, joint tax force, NIBSS fraud reporting channel etc . CAC registration is unnecessary distraction, and we urge CAC to focus on how to save over 50% dead businesses of the 4.9 million registered by CAC so far."
PoS operators announce new withdrawal charges
Earlier, Legit.ng reported that PoS operators hiked charges to over 100% following persistent cash scarcity.
Check showed that the PoS operators, which served as a last resort for cash-strapped Nigerians, increased their fees to N400 for every N10,000 withdrawal instead of the N200 they previously charged.
The situation is worse in some states, especially in Lagos, where most ATMs are dry or customers form long queues to withdraw.
PAY ATTENTION: Donate to Legit Charity on Patreon. Your support matters!
Source: Legit.ng
