Major Bank Announces Date To Freeze Accounts Of Customers And PoS Operators

PalmPay, a leading fintech company, has announced that it will freeze the accounts of point- of- sale (PoS) operators who fail to register with the Corporate Affairs Commission (CAC) by July 7, 2024. This directive is in line with the 2013 Central Bank of Nigeria (CBN) recommendations on Agent Banking and Section 863 (1) of the Companies and Allied Matters Act 2020. ..Read Full Article

According to PalmPay, all PoS operators using their platform must submit their CAC certificates or register with the CAC by the specified deadline to avoid account freezing. To facilitate the registration process, PalmPay has incorporated the CAC registration portal into its Business App, enabling operators to easily register their companies and submit the necessary documents.

Umuteme Enakeno, Head of Marketing and Communications at PalmPay, stated that the company fully supports the CAC’ s directive. ” We provide 24/7 customer support and conduct weekly meetings to guide operators through the process, ” he said. Operators can contact PalmPay customer support via phone, email, or by visiting any of the 36 state offices across Nigeria for assistance.

The CBN had instructed all non- individuals on the agent banking authorization to register their businesses with the CAC as soon as possible, in accordance with Section 863 of the Companies and Allied Matters Act (CAMA) 2020. The directive, dated April 30, 2024, requires all PoS terminals, whether owned by agents, merchants, or private persons, to register with CAC before commencing business.

PalmPay urges all its business customers to submit or register their CAC before the deadline to avoid account freezing. Failure to comply may result in account suspension, affecting operators’ ability to conduct business.
This development comes as Nigerian banks and fintech companies prepare to block accounts of PoS operators yet to register their businesses with the CAC by July 7, 2024. The move aims to ensure compliance with regulatory requirements and the CBN’ s regulations.
In related news, Point of Sa unle providers operating under the National President of the Nigerian Association of Mobile Money and Bank Agents have decided to take the CAC to court to challenge the validity of the registration directive. The outcome of this legal challenge remains to be seen.
Overall, PalmPay’ s announcement highlights the importance of compliance with regulatory requirements in the fintech industry. As the deadline approaches, PoS operators must prioritize registration to avoid disruptions to their business operations.