EFCC Issues Fresh Warning to POS Operators to Strengthen KYC Compliance Amid Rising Financial Crimes

 

The Economic and Financial Crimes Commission (EFCC) has issued a stern reminder to Point of Sale (PoS) operators across Nigeria, urging strict compliance with Central Bank of Nigeria (CBN) regulations and emphasizing the critical importance of Know Your Customer (KYC) protocols.

This advisory was delivered on Wednesday, May 7, during an official engagement between the Kaduna Zonal Directorate of the EFCC and members of the Association of Mobile and Bank Agents of Nigeria (AMBAN). The session brought together PoS agents from various parts of the region under one roof to deliberate on pressing security and regulatory concerns in their fast-growing industry.

At the forefront of the meeting was Bawa Kaltungo, Acting Director of the EFCC’s Kaduna Zonal Office, who represented the commission’s national chairman, Ola Olukoyede. Addressing the gathering, Kaltungo underscored the vulnerability of PoS businesses to fraudulent activities, stating that the informal yet critical role they play in the financial ecosystem makes them potential conduits for illicit transactions.

The EFCC official warned that lax identification procedures and poor knowledge of CBN guidelines have created loopholes that unscrupulous elements readily exploit. “PoS operators are increasingly becoming targets for criminals due to the nature of their business. It is imperative that you familiarize yourselves with the financial regulations that guide your operations,” Kaltungo advised.

While commending the Association of Mobile and Bank Agents of Nigeria for initiating the meeting, Kaltungo also encouraged the association to deepen its cooperation with anti-graft agencies. According to him, such collaboration is not only strategic but essential in combatting the wave of money laundering and related crimes being facilitated through financial agents.

A key message delivered by the EFCC was the importance of implementing robust KYC procedures. Kaltungo stressed that operators should thoroughly vet every customer engaging in financial transactions through their platforms. He explained that knowing who a customer is, and keeping records of transactions, not only protects the operator but also assists law enforcement agencies in tracking illicit financial flows.

Rather than issuing threats, the EFCC’s tone was one of partnership and enlightenment. Kaltungo described PoS operators as vital partners in ensuring financial integrity within communities, particularly in areas where traditional banking infrastructure remains limited. He noted that the commission’s outreach was a proactive step to prevent rather than prosecute.

Mohammed Bala, the chairman of AMBAN, responded positively to the commission’s call. He highlighted the challenges faced by mobile money agents, including operational risks, theft, fraud, and increasing pressure from criminal elements seeking to exploit their services. Bala applauded the EFCC for showing a willingness to engage rather than simply enforce, adding that such interactions empower operators to act more responsibly.

To enhance transparency and accountability, Bala revealed that the association has launched a website that captures the profiles of all its members nationwide. This initiative, he said, is part of a broader strategy to sanitize the industry, encourage professionalism, and make it easier for authorities and the public to identify legitimate agents.

The PoS industry has experienced rapid growth in Nigeria, particularly as the demand for cash access and financial services has outpaced the expansion of brick-and-mortar banks. This explosion in demand, while beneficial for financial inclusion, has also brought significant regulatory and security challenges.

Kaltungo made it clear that the EFCC is not out to stifle businesses but to ensure that legitimate agents thrive in a secure environment. He reiterated the importance of constant education and re-education of operators, noting that financial crimes are becoming increasingly sophisticated.

While addressing the group, he called for vigilance and integrity among all stakeholders in the industry. “You must resist the temptation to look the other way when something suspicious occurs. Your role as frontline financial intermediaries places a great responsibility on you,” he emphasized.

The meeting concluded with a shared agreement on the need for sustained communication between PoS operators and regulatory bodies. Both parties acknowledged that the future of mobile banking in Nigeria hinges on the integrity of its operators and the strength of its regulatory framework.

As Nigeria continues its digital financial transformation, authorities are calling for all hands to be on deck. From enforcing guidelines to reporting suspicious transactions, PoS operators are now being positioned not just as service providers, but as critical players in the fight against financial crimes. The EFCC’s recent message makes it clear: ignorance of the law will no longer be an excuse, and compliance is no longer optional—it is the bedrock of sustainable operations in the PoS industry.