The Governor of the Central Bank of Nigeria, Olayemi Cardoso, and the Chief Executive Officers of commercial banks operating in the country have been summoned by the House of Representatives.
The summons was issued on Wednesday and Cardoso and the others are expected to proffer solutions to the challenges posed by the lack of documentation of Point of Sale users across the country.
The decision was reached after the consideration and adoption of a motion sponsored by the member representing Ehime/Mbano/Uboma/Obowo Federal Constituency, Imo State, John Okafor during Wednesday’s plenary.
Okafor, who lobbied for his colleagues’ support for the motion, pointed out the increasing challenges associated with the undocumented identities of POS users in Nigeria.
He stated that fraudulent activities have been discovered within the financial system, with POS operators established as the culprits.
“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.
“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,” Okafor said.
Speaking further, the lawmaker called for an immediate intervention to “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.