The Corporate Affairs Commission, CAC, and the Economic and Financial Crimes Commission, EFCC, have agreed to launch a coordinated crackdown on unregistered Point of Sale, POS, operators nationwide, following fresh alarm that only one in five agents currently complies with business registration laws.
The decision was reached during a courtesy visit by the Chairman of the CAC Board, Senator Ibrahim M. Ida, to the Executive Chairman of the EFCC, Olanipekun Olukoyede, at the anti-graft agency’s headquarters in Abuja on Thursday. Both agencies also pledged to strengthen collaboration and review their existing Memorandum of Understanding to close regulatory gaps being exploited by fraudsters.
“Only 20% of POS operators registered,” CAC raises alarm
Senator Ida told reporters after the meeting that the commission’s recent data sweep revealed a disturbing compliance rate in the fintech agent space. “Only 20% of POS operators registered,” he said, describing the situation as a threat to financial integrity. “When 80% of operators are outside the regulatory net, it becomes very difficult to trace illicit flows, identify perpetrators of fraud, and protect ordinary Nigerians.”
The CAC chairman explained that the surge in POS terminals across markets, bus stops and street corners has outpaced registration. Many agents, he said, operate without a CAC certificate, tax identification number, or verifiable business address, making it easy for criminals to disappear after a fraudulent transaction. “We cannot have a situation where financial access points become safe havens for crime. Registration is not just paperwork. It is accountability,” Ida added.
EFCC moves to review MoU, intensify prosecutions
Olukoyede said the EFCC had documented a rise in cases where unregistered POS terminals were used to launder ransom payments, move proceeds of cybercrime, and facilitate advance-fee fraud. He noted that the absence of proper KYC records was slowing down investigations and leaving victims without redress.
“We are determined to protect the financial system from abuse. POS operations must operate within the law,” Olukoyede said. “The EFCC will intensify investigations and prosecutions of POS operators linked to criminal activities. We will also work with CAC to ensure that every agent can be traced to a registered business entity.”
He disclosed that both agencies had agreed to review their existing MoU to improve real-time intelligence sharing, joint enforcement operations, and data integration between the CAC’s company registry and the EFCC’s financial crime tracking systems. “A criminal should not be able to open a POS business in 10 minutes and vanish in 10 seconds. That window is closing,” he stated.
What the crackdown will cover
Officials said the enforcement push will focus on three areas. First, CAC will ramp up registration drives and mobile registration units in major markets, transport hubs and rural areas where POS services are dominant. Penalties for operating an unregistered business, including fines and closure of terminals, will be strictly enforced under the Companies and Allied Matters Act.
Second, the EFCC will target POS agents found to be complicit in financial crimes. “This is not a war on legitimate business owners,” Olukoyede stressed. “If you are a genuine agent, register and continue your business. But if you are using POS to move stolen funds, you will be tracked and prosecuted.”
Third, both agencies plan a public sensitization campaign to educate Nigerians on how to verify POS agents. Olukoyede urged the public to insist on receipts, note the agent’s business name, and report suspicious transactions. “Ask for their CAC registration details. If they cannot provide it, walk away. Protect yourself,” he advised.
Implications for the fintech ecosystem
The move comes as POS services have become a critical part of financial inclusion, especially in areas with limited bank branches. Industry players estimate over 2 million POS terminals are active across Nigeria. However, regulators argue that rapid expansion without oversight has created vulnerabilities.
Senator Ida acknowledged the role POS agents play in driving cashless policy but insisted that growth must be responsible. “Financial inclusion and financial crime control are not mutually exclusive. We can have both if operators register, keep records, and comply with the law,” he said.
Both the CAC and EFCC said timelines for the crackdown and details of new compliance thresholds would be announced after the MoU review is finalized in the coming weeks. They also promised to engage fintech companies and agent aggregators to ensure their networks are purged of unregistered users.