- CAC issues a six-week deadline to businesses operating under unregistered names or acronyms
- The crackdown follows the N1.3 trillion cryptocurrency scam linked to CBEX, operated by ST Technologies International
- Non-compliance could lead to prosecution and up to two years’ imprisonment
The Corporate Affairs Commission (CAC) has issued a six-week deadline to all businesses operating in Nigeria under unregistered names or acronyms, warning that failure to comply may lead to prosecution and imprisonment.
This announcement was made public in a statement titled “Public Notice: Carry on Business in Nigeria Under an Unregistered Name or Acronym” released on Tuesday, April 29, via the Commission’s social media platforms.
The warning comes in the wake of the recent collapse of a fraudulent cryptocurrency scheme, CBEX, which reportedly defrauded Nigerians of approximately N1.3 trillion.
The Economic and Financial Crimes Commission (EFCC) noted that while ST Technologies International Limited, the promoter of CBEX, was registered with the CAC, it lacked authorisation from the Securities and Exchange Commission (SEC) to operate as an investment platform.
The CAC clarified that operating a business in Nigeria without registration, or using a name or acronym other than the one officially registered, constitutes a criminal offence under Section 863 of the Companies and Allied Matters Act (CAMA), 2020.
The Commission also reminded registered companies that, in accordance with Section 729 of the Act, they must display their registered name and registration number at all business locations and on all official documents and materials, including letterheads, signage, marketing content, and other publications.
The statement reads in part:
“The Commission wishes to inform the General Public that it is a criminal offence under Section 863 of the Companies and Allied Matters Act, 2020 to carry on business in Nigeria as a Company, Limited Liability Partnership, Limited Partnership or under a Business Name without registration under the Act or by a name (or acronym) other than the name (or acronym) by which the business was registered under the Act.”
The CAC further warned that any individual who knowingly makes false statements in official documents, as stated under Section 862(1) of the Act, is liable on conviction to up to two years in prison, in addition to a daily fine for each day the offence continues.
In light of these provisions, the CAC is mandating all business entities, companies, limited liability partnerships, limited partnerships, and business name owners, to ensure compliance within six weeks from the date of the notice. Non-compliance will attract enforcement actions, including prosecution.
The public is encouraged to visit the Commission’s website www.cac.gov.ng for further guidance and updates.
Meanwhile, the EFCC has clarified that registration with the Special Control Unit Against Money Laundering (SCUML) is not a substitute for licensing.
ST Technologies, the promoter of CBEX, may have had a SCUML certificate under Section 17 of the Money Laundering (Prevention and Prohibition) Act, 2022, but that did not authorise it to run an investment platform.
Unregistered PoS operators face shutdown, CAC warns, threatens legal action
Meanwhile, TheRadar earlier reported that the Corporate Affairs Commission (CAC) issued a stern warning for unregistered PoS operators, including potential shutdowns and other legal consequences, following the expiration of its 60-day deadline on September 5.
The Commission noted a poor level of compliance with its registration directive and raised concerns that those who do not register could be involved in “unwholesome activities” in the public notice released on Friday, September 6.