The Corporate Affairs Commission (CAC) has cautioned banks and other financial institutions against transacting with companies that fail to comply with disclosure requirements, emphasizing that non-compliant entities must not benefit from legal or financial privileges.
The warning was delivered on Tuesday by CAC Registrar-General, Hussaini Magaji, during the Commission’s Anti-Corruption Day event in Abuja, which also marked Day Two of its 35th Anniversary celebrations.
“At CAC today, no company without full disclosure of its Persons with Significant Control is recognised as compliant,” Magaji 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 urged regulatory bodies to coordinate fully to ensure that non-compliant companies cannot exploit gaps in oversight, stressing that a unified approach is essential to strengthen national integrity systems.
Fraudulent Registrations Exposed
Magaji revealed that CAC recently uncovered 248 fraudulent company registrations inserted into its database through unlawful means, with an additional 15 suspicious entities referred to the Economic and Financial Crimes Commission (EFCC) for investigation and prosecution.
The Registrar-General also disclosed that three CAC staff members were handed over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for allegedly tampering with company records without authorization.
“These actions were taken to eliminate opportunities for compromise and to strengthen the integrity of our processes,” he said, noting that despite criticism and personal attacks, no legal challenge has been lodged against these enforcement measures.
Call for a Unified Beneficial Ownership Register
Magaji 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 extractive industry regulators.
“Fragmentation creates duplication, inconsistencies, and regulatory loopholes that hinder law enforcement and weaken Nigeria’s anti-corruption framework,” he said, urging stakeholders to support the reform.
He further stressed the importance of Nigeria aligning with global transparency standards, referencing recent international rulings on asset ownership linked to Nigerians.
Strengthening Multi-Agency Collaboration
The CAC chief reiterated the Commission’s commitment to deeper collaboration with anti-corruption institutions including the EFCC, ICPC, NFIU, and NDLEA.
“The fight against corruption is a national duty requiring coordination, trust, and shared resolve,” Magaji said, highlighting the need for a coordinated approach to combat corporate fraud, illicit financial flows, and abuses in the financial sector.
He also renewed calls for the passage of the Persons with Significant Control (PSC) Bill, and condemned practices in which corporations declare other entities instead of individuals as beneficial owners, describing the approach as a distortion of the law and a barrier to accountability.
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