The Economic and Financial Crimes Commission (EFCC) recently issued a strong warning to point-of-sale (POS) operators in Nigeria, urging them to be vigilant against falling prey to fraudsters
The Economic and Financial Crimes Commission (EFCC) recently issued a strong warning to point-of-sale (POS) operators in Nigeria, urging them to be vigilant against falling prey to fraudsters looking to launder money through their terminals.
Chairman of the EFCC, Ola Olukoyede, expressed these concerns during a meeting with the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), led by national president Oti Obioha. The meeting took place at the EFCC headquarters and focused on the growing misuse of POS systems in various financial crimes, including money laundering, terrorist financing, and ransom activities.
Representing Olukoyede, Michael Nzekwe, the commission’s Chief of Staff and commander, emphasised the troubling trend. “Our investigations show that criminal activities often involve the use of POS machines,” he stated. Nzekwe highlighted the need for AMMBAN to bolster its oversight of POS operators and develop a robust system to accurately document their transactions.
EFCC Chairman, Ola Olukoyede
To combat these illegal activities effectively, he urged operators to maintain proper records. This would not only aid in tracing suspicious transactions but also assist law enforcement in identifying those involved when these terminals are misused to facilitate the movement of illicit funds.
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As the landscape of financial crime evolves, this call to action serves as a reminder of the critical role POS operators play in maintaining the integrity of financial transactions in the country.
EFCC wants better records from POS operatorsConcerns have been raised about the practices of some Point of Sale (POS) operators, particularly regarding how they handle customer records and transactions. Olukoyede highlighted that certain operators may be involved in fraudulent activities, yet struggle to provide basic details about transactions when investigated.
He noted, “Often, when we probe cases of money laundering tied to an operator, we find that they cannot identify the individuals who sent or withdrew the money.”
To address these issues, the chairman of the Economic and Financial Crimes Commission (EFCC) urged the Association of Mobile Money and Bank Agents of Nigeria (AMMBAN) to enforce stricter record-keeping practices for all transactions and to maintain accurate membership records nationwide.
He emphasised the importance of training and awareness programs for operators, suggesting that improving these areas could significantly help in the fight against financial crimes linked to POS services.
In response, Obioha from AMMBAN expressed the need for a stronger partnership with the EFCC, acknowledging the financial risks that come with POS operations. The association is keen on providing its members with essential training covering various topics, such as financial thresholds and the inherent risks of their work.
“We are deeply rooted in the communities we serve,” Obioha stated, reinforcing the association’s commitment to assisting the EFCC in combating fraud within the POS sector.
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