The Economic and Financial Crimes Commission (EFCC) has implicated banks in approximately 70% of financial crimes in Nigeria.
Speaking at the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria, EFCC Chairman Ola Olukayode expressed serious concerns about the escalating fraudulent activities within the banking sector.
Olukayode, represented by EFCC’s Director of Internal Audit, Idowu Apejoye, highlighted the multifaceted nature of banking fraud, encompassing both internal and external factors.
Internal-related fraud involves the outright sale of customers’ deposits, unauthorised loan facilities, forgery, and other criminal practices, while external-related offences include hacking, ATM fraud, and conspiracies. Particularly alarming is the collaboration between banking insiders and external perpetrators, a situation Olukayode deemed “disturbing and unacceptable.”
To combat these challenges, Olukayode urged the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) to prioritise proper reconciliation of accounts monthly, monitor financial activities, conduct regular reviews, and implement checks.
ACAEBIN Chairman Prince Akamadu pledged the association’s commitment to address the issues raised by the EFCC boss, emphasising the need for introspection within the banking industry.
Akamadu acknowledged the industry’s efforts in implementing the Know Your Customer (KYC) mechanism to counter fraudulent activities. Despite these measures, he underscored the importance of addressing existing gaps and leaks to enhance the industry’s overall integrity.
The association is actively collaborating to formulate effective solutions and, by the end of the retreat, aims to produce a communiqué addressing the role of banks in Nigeria’s foreign exchange challenges.
As the industry grapples with the revelations, efforts to fortify the banking sector against fraudulent activities remain a top priority.
The EFCC’s disclosure serves as a stark reminder of the imperative for continuous vigilance and proactive measures within the financial landscape.
