EFCC and CAC Forge Alliance to Combat Unregistered POS Operators, Bolstering Financial System Integrity
The Economic and Financial Crimes Commission (EFCC) and the Corporate Affairs Commission (CAC) are set to intensify efforts against unregistered Point of Sale (POS) operators, citing significant risks to businesses and national security. This collaborative stance emerged during a courtesy visit by the CAC Board Chairman, Senator Ibrahim Adah, to the EFCC Executive Chairman, Mr. Ola Olukoyede, at the EFCC headquarters in Abuja.
Senator Adah highlighted a critical compliance gap, revealing that only approximately 20% of POS operators are currently registered with the CAC. This situation contravenes the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria (CBN) Agent Banking Regulations 2026, both of which mandate the registration of all businesses operating under a business name. The CAC is seeking the EFCC’s support to enforce these regulations nationwide and to collaborate on developing a comprehensive database of POS operators for law enforcement agencies.
Concerns were also raised regarding the potential for unregistered POS terminals to be used in illicit financial activities, including the routing of criminal proceeds such as ransom payments from kidnapping cases. Senator Adah underscored the interconnected mandates of the CAC and EFCC, explaining that while the CAC registers and regulates companies, the EFCC investigates and prosecutes financial crimes. He emphasised that the misuse of corporate entities for fraud and money laundering directly impacts both agencies, necessitating a united front. A robust CAC registry, he posited, simplifies the EFCC’s investigative work, just as strong EFCC enforcement safeguards the integrity of the corporate registry.
The proposed synergy between the two agencies will focus on data and intelligence sharing concerning fraudulent companies, public sensitisation on financial risks, and capacity building for staff. The CAC Board has expressed full commitment to this partnership, viewing the EFCC as a strategic ally in enhancing corporate compliance, promoting transparency, and protecting Nigeria’s financial system.
Responding to these concerns, EFCC Chairman Ola Olukoyede acknowledged the significant challenges posed by unregulated POS operators to the nation’s financial system. He reiterated the EFCC’s dedication to working closely with the CAC to combat economic crimes and promote regulatory adherence. Olukoyede described the CAC as the “gateway to economic growth in Nigeria,” noting its pivotal role in initial foreign investor engagement. He disclosed that the EFCC has established a dedicated desk to handle matters involving the CAC and that ongoing investigations into approximately 200 companies, forwarded by the CAC, have yielded substantial progress and significant discoveries.
Olukoyede further pointed out that many public corruption cases investigated by the EFCC involve procurement and contract fraud perpetrated through companies regulated by the CAC. He stressed the importance of addressing insider deficits and strengthening internal accountability within both institutions. To facilitate enhanced collaboration, Olukoyede directed officials from both agencies to review and update an existing Memorandum of Understanding (MOU) to align with current realities, particularly concerning beneficial ownership information and data protection.
