CBN Governor, Bank CEOs to Appear Before NASS Over POS Fraud

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, and Chief Executive Officers of commercial banks have received an invitation from the House of Representatives over the increasing cases of Point of Sale (POS) fraud linked to unlicensed operators.

The lawmakers reached the resolution to summon the CBN boss and others after due consideration of a motion raised by John Okafor, the representative for Ehime/Mbano/Uboma/Obowo Federal Constituency in Imo State, during a plenary session on Wednesday.

The meeting will avail parties involved the chance to discuss solutions to the ongoing issue of unverified Point of Sale (POS) operators across Nigeria.

In his defense, Okafor blamed the rise in POS-related fraud on the lack of proper documentation for POS users, noting that the absence of identity verification for users aids crimes such as identity theft, money laundering, and unauthorized transactions.

Okafor stressed that the unlicensed POS transactions which he noted was on the increase, is aiding fraudulent activities.

Okafor said, “The House is aware that undocumented POS transactions create a loophole for fraudulent activities, such as identity theft, money laundering, and unauthorised transactions.

He outlined that the user-identified verification would help tackle the issue of fraud and build Nigerians trust in the nation’s financial system.

Emphasizing on the need for accountability, Okafor said, “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.”

The lawmaker also criticized the Central Bank and other regulatory bodies over their failure to enforce proper regulations and verifications of POS users.

He suggested that the House must insist on a system to verify the identity of POS users emphasizing that it would not only align with national financial regulations but also meet international anti-money laundering and “Know Your Customer” (KYC) standards.

After Okafor’s defense of the motion, Speaker Tajudeen Abbas directed 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 commercial banks to deliberate on the way forward.