Approximately 70% of financial crimes in Nigeria are connected to banks, according to a report released on Monday by the Economic and Financial Crimes Commission.
Ola Olukayode, the chairman of the EFCC, made this statement in an address to the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) during their 2023 Annual Retreat and General Meeting in Abuja.
He highlighted the concerning increase in fraudulent activity in the banking industry, which poses significant obstacles and worries for the commission.
“70% of Financial Crimes in Nigeria Linked to Banking Sector, EFCC Chairman Reveals”
Olukayode emphasised the necessity of cooperative effort among pertinent authorities and professionals, especially audit executives, to effectively identify and prevent fraudulent activities within the industry. Olukayode was represented by Idowu Apejoye, the Director of Internal Audit for the EFCC.
He said, “Broadly speaking, banking fraud in Nigeria is both inside and outside-related. The Inside-related fraud comprises outright selling of customers’ deposits, authorising loan facilities, forgery, and several other kinds of unhealthy and criminal practices.
“The outsider-related ones include hacking, ATM fraud, and conspiracy, among others. And then the absurd one is when both collaborate, that is, collaboration among the bankers and the outsiders.
“That one is the one that is really absurd because when you do that, that means you are selling out the system. It is estimated that about 70 percent of financial crimes in Nigeria are traceable to the banking sector, this scenario is disturbing and unacceptable.”
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Olukayode stressed that in order to address inconsistencies, ACAEBIN must do monthly account reconciliations in accordance with accounting standards.
He asked the association to supervise the financial operations of the bank, among other things by performing routine evaluations and checks and comparing actual revenue and expenses to budgeted amounts.
The Chairman of ACAEBIN, Prince Akamadu, stated that banks were aggressively battling fraud by implementing programmes like the Know Your Customer system.
“I will tell you something, I’m not aware of any institution or sector that has done more in the area of KYC than the banking industry. But it truly goes beyond the banks.
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“And I can tell you truly again that even at the bankers’ committee level, and even at the typical details of banks in Nigeria, these are areas we are actually looking at to see where there are leakages and to begin to block them,” he stated.
Akamadu went on to say that the organisation will try to implement a few of the EFCC chief’s recommendations.
He added that one of the goals of the retreat was to address the association’s complete commitment to resolving Nigeria’s foreign currency problems.
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