UGO AMADI, Business Editor
The recent outburst by the acting chairman, Economic and Financial Crimes Commission (EFCC), Ibrahim Magu , on fraudsters now working inside banks which has caused Nigerian banks recording so much financial loss has become a source of worry to stakeholders.
This confirms that the sector is in desperate need of reforms as training had become necessary going by the global acknowledgment of corruption in most government and financial institution and its (corruption) rejection by the United Nation (UN), World Bank and International Monetary Fund (IMF).
Operators insist that there is urgent need to stop financial fraud in the system as government at all levels are losing billions of Naira every day and most of these criminal cases bordering on fraud, corruption and cyber-crimes are partly because there are no forensic and investigative auditors in Nigeria to prevent fraud from taking place.
Despite efforts by the regulatory authorities to curb financial fraud and clean up the banking system, Nigerian banks recorded 20,768 cases costing them N19.77 billion in the first 6 months of 2018.
The Central Bank of Nigeria (CBN) in its quarterly economic report affirmed that most reported fraud and forgery incidences were perpetrated by both bank staff and non-bank culprits.
Invariably Magu claimed that fraudsters now work in Nigerian banks and also accused banks of conniving with Bureau De Change operators to launder money.
Magu, who spoke at recent meeting with compliance officers of banks in the south-south zone, said fraudsters now work in Nigerian banks. “You cannot fight corruption in isolation that is why we are having this meeting today with Compliance officers of banks. We have to join hands including the journalists to succeed in this fight”, Magu said.
“A lot of laundering activities today are going on in the bank. This is because a lot of them connive with Bureau De Change agents. We have discovered that many of these operators of Bureau De Change are foreign nationals. Banks give them chance and they launder our money and they finance terrorism. Banks also help politically exposed persons to steal funds. They give life to internet fraudsters through Money Gram and Western Union.
“Unfortunately, we now have fraudsters working inside the banks. They subject people’s account into intimidation and extortion. We want to put our mercenary to deal with such bankers.” He added.
Recently, the Chartered Institute of Forensic and Investigative Auditors of Nigeria (CIFIAN), Pro-tem President, Dr. Victoria Enape, said fraud volume in Nigerian banks increased dramatically to about N25 billion in the past five years.
According to her, scandalous collapses, financial loses, loss of employment, investment and investors, loss of earnings and means of livelihood are some of the consequential social dislocations and risks of corruption and fraud.
She explained that fraud and corruption weakened the institutional capacity of governments and organizations as well as impedes trade and investment.
The CIFIAN boss, therefore, reiterated the urgent need for the passage of the Institute’s Bill by the House of Representatives to give concurrency after Senate passed the Bill.
According to her, “The place of training of forensic and investigative auditors cannot be overemphasized because the whole world has embraced this current trend years ago which has assisted them in the fight against fraud.
“Chartered Institute of Forensic and Investigative Auditors is an anti-fraud organisation, saddled with the responsibility of providing skills to relevant professionals on the use of science and technology to prevent, detect and investigate fraud of all kinds.
“The Institute also has mechanism to block illicit financial flows in the country; it therefore becomes indispensable in Nigeria if Nigerians and the future generation must experience peace and economic development” , Enape said.
For a better society
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