Stop Enabling Non-Compliant Firms, CAC Tells Banks

By Oluwakemi Kindness

The Corporate Affairs Commission (CAC) on Tuesday cautioned banks and other financial institutions against enabling non-compliant companies to operate.

The CAC is also insisting that entities without full disclosure of their Persons with Significant Control (PSC) must not be allowed to enjoy legal or financial privileges.

The Registrar-General of CAC. Hussaini Magaji delivered the warning on Tuesday in Abuja during the Anti-Corruption Day event marking Day Two of the Commission’s 35th Anniversary Celebration.

He stated that the Commission now flags companies that fail to disclose their beneficial owners as inactive, but noted with concern that some financial institutions continue to transact with such entities.

“At CAC today, no company without full disclosure of its Persons with Significant Control is recognised as compliant,” he said.

“Companies that fail to disclose their PSC are flagged as inactive, yet some financial institutions continue to allow them to operate. This is a major weakness in our national compliance chain.”

He maintained that regulatory institutions must speak with one voice to strengthen national integrity systems, stressing that a non-compliant company must not enjoy the privileges of legality.

CAC Hands EFCC 248 Fake Registrations, Submits Staff to ICPC

The Registrar-General disclosed that the Commission uncovered 248 fraudulent company registrations inserted into its database through unlawful means.

An additional 15 suspicious entities were also detected and forwarded to the Economic and Financial Crimes Commission (EFCC) for investigation and prosecution, he said.

He further revealed that three members of staff were handed over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for alleged unauthorised tampering with company records.

“These actions were taken to eliminate opportunities for compromise and to strengthen the integrity of our processes,” he said.

“Despite pushback and personal attacks, there has been no legitimate legal challenge to the removal and reporting of these illegal registrations.”

Push for a Single Beneficial Ownership Register

The CAC chief also called for the establishment of a Single, Harmonised National Beneficial Ownership Register to replace the current fragmented system managed separately by agencies such as NEPZA and the extractive industry regulators.

He argued that the fragmentation creates duplication, inconsistencies and regulatory loopholes that hinder law enforcement and weaken Nigeria’s anti-corruption framework.

“CAC is positioned by law and structure to serve as the central repository for beneficial ownership information,” he stated, urging stakeholders to support the reform.

Nigeria Must Align With Global Transparency Trends

Referencing recent international rulings on asset ownership linked to Nigerians, he said global governance standards are shifting rapidly toward transparency, and Nigeria must not lag behind.

The Registrar-General renewed calls for the passage of the Persons with Significant Control (PSC) Bill to strengthen beneficial ownership disclosure and prevent misuse of the corporate vehicle for illicit activities.

He also criticised the practice by some corporations of declaring other entities—rather than individuals—as beneficial owners, describing it as a distortion of the intent of the law and a barrier to accountability.

Call for Stronger Multi-Agency Collaboration

The CAC chief reaffirmed the Commission’s commitment to deeper collaboration with the EFCC, ICPC, NFIU, NDLEA and other anti-corruption institutions, noting that coordinated action is essential to combating illicit financial flows, corporate fraud and other abuses.

“The fight against corruption is a national duty requiring coordination, trust and shared resolve,” he added.