CAC Blames Banks for Undermining Anti-Corruption Efforts

• CAC Registrar-General Hussaini Magaji (SAN) says some banks allow inactive, non-compliant companies to operate freely.
• 248 fake company registrations were reported to the EFCC for investigation and prosecution.
• Three CAC staff were handed to ICPC for internal misconduct.
• Magaji calls for a single national register for beneficial ownership to strengthen transparency.
• He urges the legal elevation of the Persons with Significant Control (PSC) Rules into an Act.

Banks Accused of Weakening Compliance

The Corporate Affairs Commission (CAC) has raised concerns that some banks are inadvertently aiding corruption by allowing inactive or non-compliant companies to open accounts and conduct transactions. CAC Registrar-General Hussaini Magaji (SAN) made the disclosures during an Anti-Corruption Day panel in Abuja, held as part of the Commission’s 35th anniversary celebrations.

Magaji highlighted that companies that fail to disclose their Persons with Significant Control (PSCs) are flagged as inactive, rendering them ineligible for credible business transactions. Yet, some financial institutions continue to permit these companies to operate, undermining national compliance efforts.

“While CAC may flag such companies as inactive, some banks continue to allow them to transact freely. This is a major weakness in our national compliance chain,” Magaji said. He stressed that the legal privileges of non-compliant entities must be revoked uniformly across all institutions to strengthen governance.

Push for Transparency and Legal Reform

The Registrar-General also revealed that CAC reported 248 fake company registrations to the Economic and Financial Crimes Commission (EFCC) and handed three staff members to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for alleged misconduct. These entities operated without traceable corporate identities and failed to contribute to national revenue.

Magaji called for a harmonised national register for beneficial ownership, noting that current fragmented sector-specific registers create loopholes for corruption, money laundering, and illicit financial flows. He said that CAC is legally positioned to serve as the central repository for this data and urged collaboration among anti-corruption agencies to ensure transparency.

He further advocated elevating the PSC Rules to a full Act of the National Assembly, warning that some corporations still declare other companies, rather than individuals, as beneficial owners, thereby defeating the purpose of transparency.

Also read: CAC’s PoS Registration Order Sparks Industry Rift as 2026 Deadline Looms

“The fight against corruption is not the responsibility of one agency. It is a national duty requiring coordination, trust, and shared resolve,” Magaji said. He called for sustained, structured collaboration between CAC, EFCC, ICPC, and other enforcement agencies to produce measurable outcomes.

The panel session was part of CAC’s 35th anniversary activities, reinforcing the Commission’s commitment to integrity, compliance, and corporate governance in Nigeria.