By Paul Effiong, Abuja
House of Representatives has mandated its Committees on Digital and Electronic Banking, Finance, Banking Regulations and Financial Crimes to invite the governor of the Central Bank, CBN, Olayemi Cardoso and managing directors of commercial banks to appear before it and explain adequate measures put in place to curb fraudulent transactions.
The lawmakers explained that there were several dangers posed by undocumented identities in Point of Sale, POS, transactions across the country.
This was sequel to a motion sponsored by John Okafor on the need to cross-check documents of PoS operators, adding that there has been increase in cases of fraud, identity theft and money laundering linked to the lack of verifiable documentation for PoS users and fund recipients.
The lawmaker emphasised that the absence of proper documentation could create loopholes that fraudsters exploit.
These include identity theft, unauthorised transactions and money laundering.
He noted that enforcing the documentation of users’ identities would significantly reduce these crimes and enhance the security of financial transactions in Nigeria.
“There is an obvious regulatory bias and enforcement challenge regarding due process by relevant bodies,” Okafor stated, stressing the urgency of intervention to protect Nigerians from criminal activities tied to the PoS system.
He explained that establishing a system for verifiable documentation of PoS users’ and recipients’ identity aligns with national and international financial regulatory requirements with the objective of preventing financial crimes and ensuring compliance with Anti-Money Laundering, AML, and Know Your Customer, KYC, regulations.
The lawmaker also emphasised the importance of implementing stringent identity verification as a measure to protect consumers and businesses from becoming vulnerable to fraudulent schemes carried out through PoS transactions.
This, he said would build trust in the financial system and encourage greater participation in the growing cashless transaction system in Nigeria.
Okafor also observed that proper documentation would foster accountability and transparency in transactions, enabling authorities to trace and hold individuals accountable for illegal activities.
