The Nigerian House of Representatives has decided to call in the Governor of the Central Bank of Nigeria, Olayemi Cardoso, and the CEOs of commercial banks to discuss the issue of inadequate documentation for Point of Sale users nationwide, SAVANNAH NEWSNOW REPORTS.
This move comes after a motion was raised by John Okafor, representing Ehime/Mbano/Uboma/Obowo Federal Constituency in Imo State, during the plenary session on Wednesday.
Okafor pointed out the increasing problems caused by the lack of proper documentation for POS users, which significantly hampers security and financial regulation.
He called on his fellow representatives to back the motion, stressing the importance of a unified approach to resolve the issue.
According to him, cases of fraudulent activities within the financial system have been established against POS users, adding that there is “A necessity to combat such illicit practices and safeguard the integrity of financial transactions within Nigeria.”
He said, “The House is aware that undocumented POS transactions create a loophole for fraudulent activities, such as identity theft, money laundering, and unauthorised transactions.
“By enforcing the documentation of users’ identity, the incidence of fraud will significantly reduce and the security of financial transactions in Nigeria will be enhanced. The House is aware that proper documentation of POS users’ identities fosters accountability among operators and users. This transparency will help trace transactions back to the individuals involved, holding them accountable for illegal activities.”
In a shot fired at the apex bank, the All Progressives Congress lawmaker expressed what he called regulatory bias and enforcement challenge towards due process by the relevant regulatory bodies.
He called for immediate intervention to avert this ugly situation and “Shield Nigerians from the hands of criminals through the use of the POS system.
“Establishing a system for verifiable documentation of POS users’ and recipients’ identity aligns with the national and international financial regulatory requirements to prevent financial crimes and ensure compliance with anti-money laundering and know your customer regulations.”
After receiving widespread backing for the motion, Speaker Tajudeen Abbas, who led the plenary session, instructed the House Committees on Digital and Electronic Banking, Finance, Banking Regulations, and Financial Crimes to summon the CBN Governor and the Group Managing Directors of all Commercial Banks and Other Financial Institutions that use POS services for a meeting.
They have been given a four-week deadline to present their findings to the House.
