Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), has asserted that banks have so far been linked to about 70 per cent of the financial crimes that happens in the country.
Mr. Ola Olukayode who is the Chairman of the EFCC made this disclosure on Monday while speaking in Abuja at the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria.
He made the observation that the banking industry was turning into a hotbed of fraud, which had been posing serious problems and worries for the commission.
Olukayode who was represented by the Director, Internal Audit, EFCC, Idowu Apejoye, said there was a need for concerted effort by relevant authorities and professionals, especially audit executives to prevent and tackle issues of fraudulent practices in the sector.
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.
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“The outsider related ones include hacking, ATM fraud, conspiracy, among others. And then the absurd one is when both collaborate, that is collaboration among the bankers and the outsider.
“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 per cent of financial crimes in Nigeria are traceable to the banking sector, this scenario is disturbing and unacceptable.”
Olukayode stated that in order to curb the anomalies, ACAEBIN should ensure proper reconciliation of accounts every month in accordance with accounting requirements.
He charged the association to monitor the financial activities of banks, comparing actual and budgeted revenue with expenses, carry out periodical review, checks, among others.
The Chairman, ACAEBIN, Prince Akamadu, said the association would work towards achieving some of the recommendations provided by the EFCC boss.
He also stated that the association was fully committed to fixing the foreign exchange challenges in Nigeria, which was one of the issues that the retreat aimed to achieve.
“That is part of the reason why we are having this retreat, to ask ourselves, to do an introspection and ask ourselves, given our position in the banking industry, or the executives of banks in Nigeria, are we doing enough?
“Have we done enough? What more can we do to help in sanitising the system? Are there things the banks could do to help in sanitising the FX in this country?”
“By the end of this retreat, we are expected to come up with a communique and we hope to address some of the issues, one way or the other, that will address the role of banks in FX challenges in this industry,”
Akamadu further explained that banks were not resting on their oars to curb fraudulent activities, as they were putting efforts in the Know Your Customer mechanism.