*Reps summon CBN Gov, banks’ CEOs over lack of documentation of POS users
*Say move meant to safeguard integrity of financial transactions within Nigeria
*Bank executives have allegedly been identified as collaborators of POS owners
*Insist Nigerians must be shielded from hands of criminalities through use of POS
By Aaron Ossai
Worried by the number of unidentified Point of Sales, POS operators in the country, the House of Representatives yesterday resolved to invite the Central Bank of Nigeria, CBN Governor, Olayemi Cardoso, and Chief Executive Officers of commercial banks operating in the country to appear before it to propose solutions to the challenges posed by the lack of documentation of Point of Sale users across the country.
This followed the consideration and adoption of a motion sponsored by the member representing Ehime/Mbano/Uboma/Obowo Federal Constituency, Imo State, Hon. John Okafor, during Wednesday’s plenary.
Leading debate on the general principles of the motion, its sponsor, Hon. Okafor identified the increasing challenges associated with the undocumented identities of POS users in Nigeria.
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.”
“The House is aware that undocumented POS transactions from both party’s identities 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”, he said.
Speaking further, the lawmaker expressed what he called regulatory bias and enforcement challenge towards due process by the relevant regulatory bodies and called for immediate intervention to avert this ugly situation and “Shield Nigerians from the hands of criminalities 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”, he added.
Following overwhelming support for the motion, the Speaker, Tajudeen Abbas, who presided over the plenary, mandated the House Committees on Digital and Electronic Banking, Finance, Banking Regulations, and Financial Crimes to invite the CBN Governor and the Group Managing Directors of all Commercial Banks and Other Financial Institutions utilising POS services to appear before them.
The committees have four weeks to report back to the House for further legislative tinkering.