The House of Representatives on Wednesday asked its relevant committees to invite the Governor of the Central Bank of Nigeria, Managing Directors of Commercial banks, and other financial institutions utilizing point-of-sale services to find solutions to the challenges faced by users of POS in the country.

This followed a motion by John Okafor (APC, Imo) on the need to implement verifiable documentation of Point of Sale users and fund recipient identity across the country.

Okafor said the increasing challenges posed by the undocumented identities of Point of Sale (POS) users and fund recipients in Nigeria have given opportunities for fraudulent activities within the financial system and the necessity to combat such illicit practices and safeguard the integrity of financial transactions within Nigeria.

He said undocumented POS transactions from both parties? identities create a loophole for fraudulent activities, such as identity theft, money laundering, and unauthorised transactions. Also, by enforcing the documentation of users? identity, the incidence of fraud will be significantly reduced and the security of financial transactions in Nigeria will be enhanced.

He said proper documentation of POS users? identity fosters accountability among operators and users, adding that this transparency will help trace transactions back to the individuals involved, holding them accountable for illegal activities conducted through the POS system, and ensuring a lasting end to the criminal use of POS.

He said there is an obvious regulatory bias and enforcement challenge towards due process by the relevant regulatory bodies and the urgency for immediate intervention to avert this ugly situation and shield Nigerians from the hands of criminals through the use of the POS system.

According to him, establishing a system for verifiable documentation of POS users? and recipients? identities aligns with the national and international financial regulatory requirements to prevent financial crimes and ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.

He stressed that implementing stringent identity verification measures will protect consumers and businesses from becoming vulnerable to fraudulent schemes carried out through POS transactions, adding that the process will build trust in the financial system and encourage greater participation in the growing cashless transactions system in Nigeria. (The Nation)