The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukayode, has unveiled a startling revelation, asserting that banks are implicated 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 in Abuja, Olukayode expressed deep concerns about the escalating prevalence of fraudulent activities within the banking sector.
Represented by the Director of Internal Audit at EFCC, Idowu Apejoye, Olukayode highlighted the challenges posed by the banking industry becoming a breeding ground for fraudulent activities. He emphasized the urgent need for collaborative efforts among relevant authorities and professionals, particularly audit executives, to address and prevent fraudulent practices within the sector.
Olukayode outlined the dual nature of banking fraud in Nigeria, distinguishing between inside-related fraud involving activities like selling customers’ deposits and authorizing loan facilities, and outside-related fraud, which includes hacking and ATM fraud. He particularly emphasized the alarming scenario of collaboration between insiders and outsiders, terming it as “disturbing and unacceptable.”
To combat these anomalies, Olukayode urged the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) to enforce monthly reconciliation of accounts in accordance with accounting standards. He called upon the association to actively monitor financial activities, conduct regular reviews, and implement stringent checks to safeguard against fraudulent practices.
In response, Prince Akamadu, Chairman of ACAEBIN, pledged the association’s commitment to addressing the issues raised by the EFCC. He acknowledged the importance of introspection within the banking industry and expressed the association’s dedication to resolving challenges, particularly in the realm of foreign exchange.
The retreat aimed to deliberate on strategies to enhance the role of banks in addressing foreign exchange challenges in Nigeria. Akamadu highlighted the proactive measures banks are taking, including robust Know Your Customer (KYC) mechanisms, and assured the EFCC that the association is actively working to curb fraudulent activities within the industry. As the retreat progresses, stakeholders anticipate a comprehensive communique that will outline actionable steps to fortify the banking sector against financial crimes and contribute to the overall integrity of the Nigerian financial system.
