The Economic and Financial Crimes Commission (EFCC) has levied accusations against banks, alleging collusion with Point-of-Sale (POS) operators to restrict cash availability at Automated Teller Machines (ATMs).
This accusatory finger points towards what the EFCC terms as “financial illegality,” where POS operators purportedly amass substantial cash from banks, leaving ATMs shortchanged and inconveniencing Nigerian consumers.
The EFCC, through its official communication channel on X, declared its stance on Saturday, May 11, 2024. Acting Zonal Director of the Ibadan Zonal Command of the EFCC, ACE I Hauwa Garba Ringim reiterated this position during a recent stakeholders’ meeting with Compliance Officers of Banks in Oyo State.
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Ringim emphasized the imperative to halt illicit dealings and the trading of naira with POS operators, calling for a cessation of this unfair practice that deprives Nigerians of convenient access to their funds.
“What we notice and see around lately is that Nigerians can only withdraw a small amount of their money with the banks in Automated Teller Machine (ATMs) but POS operators evidently go around with huge amounts of money gotten from the banks. This is not fair to Nigerians and we must fight it head-on,” said Ringim.
Moreover, Ringim cautioned banks’ compliance officers against disclosing EFCC’s financial probes to their clientele, citing the potential jeopardy it poses to ongoing investigations. He underscored the importance of maintaining confidentiality to avoid tipping off suspects, which could impede the agency’s efforts to gather crucial evidence for prosecution.
The EFCC’s concern over this collusion extends to its broader fight against economic and financial crimes, where it perceives an unhealthy support system for fraudsters within the banking sector. The agency urged Compliance Officers to promptly respond to its requests, providing certified true copies of relevant documents to expedite investigation processes and bring corruption cases to a swift resolution.
In response, Compliance Officers acknowledged the necessity for effective collaboration between the EFCC and financial institutions, expressing their commitment to uphold new dynamics in combating financial crimes.
This cautionary stance by the EFCC comes hot on the heels of its recent action freezing over 300 accounts suspected of involvement in illicit forex trading, a move aimed at curbing activities that could destabilize the national currency. Notably, a significant portion of the suspected individuals are identified as both Bureau de Change operators and POS operators, highlighting the interconnectedness of these illicit financial activities.
However, the anti-graft agency’s allegation of collusion against banks comes amid growing concern emanating from lack of cash in ATMs, while the bulk is given to POS operators – forcing consumers to pay for cash withdrawal.
Following the recent directive from the Nigerian government mandating POS operators to register with the Corporate Affairs Commission (CAC) as part of its regulatory oversight to fortify the financial sector, financial experts have raised concerns that the government is inadvertently, endorsing the trading of the naira as a commodity.
By formalizing the procedures of POS operators, it is believed that the government created a breeding ground for artificial arbitrage, which in turn undermines the stability of the currency and diminishes consumer confidence.
“POS can’t take over function of cash deposits and withdrawal from licensed commercial and microfinance banks,” financial analyst, Kalu Aja said. “Are we so debased in expectations of service that licensed trillion naira banks with billions of naira investment in retail branches and ATMs have no cash but a chap with an umbrella down the street has cash?”
Does the the EFCC man have evidence that the large sums the POS agents move around come directly from banks? It goes beyond blanket statements, until the banks tell him that they are also looking for the cash. It now raises the question, where is the cash? We have sequestered trillions of naira worth of cash in the hands of millions of people. If you think you can easily recover the cash and get them back to banking system, I wish you well.
We are not as civilized as we think, so as long as avenues for people to shortchange the system exist, we will remain worse off. Finance is very sensitive, and it will be illegal to start asking people what they did with the previous money they withdrew.
We make plenty laws, but the same people who ought to keep watchful eyes and ensure that compliance is never compromised are the very ones helping defaulters to game the system. Bank staff will assist you with money laundering; help the yahoo boys/girls recover their money; assist the politicians to hide their loots; help kidnappers secure their bags, but we are here sounding like we live in Mars. Come on, there are more than enough rotten and corrupt people in every facet of Nigerian system that will help you accomplish your unholy mission.