By Ola Kay
Chairman of the Economic and Financial Crimes Commission, EFCC, Mr. Ola Olukoyede, has criticized the Nigerian banking sector for being responsible for about 70 per cent of financial crimes in the country.
The anti-graft agency boss, made the disclosure at the 2024 Annual Retreat/Conference of the Association of Chief Audit Executives of Banks in Nigeria, ACAEBIN, that took place on on Monday in Abuja, the Federal Capital Territory.
During the conference which came under the theme : “The Role of the Internal Auditor in Promoting Stability in the Financial Services Sector and National Economic Growth,” Olukoyede noted the important role of Chief Audit Executives in combating fraud within the banking sector.
The EFCC boss said that, “As Certified Bankers and professional auditors, you have an important role to play in sanitising, stabilising and strengthening the financial services sector and by extension growing the commanding heights of our economy.
“In Nigeria particularly, the banking sector is increasingly becoming a cesspool of fraudulent activities and this is raising considerable challenge and concerns to the EFCC.
“Broadly speaking, banking fraud in Nigeria is both insider and outsider-related. The insider-related fraud comprises outright stealing of customers’ deposits, authorised loan facilities, forgery and several other kinds of unhealthy and criminal practices.”
Represented by the Director Internal Audit EFCC, Mrs. Idowu Apejoye, hepointed out the important role of Chief Audit Executives in combating fraud within the banking sector.
The EFCC Chairman observed that outsider-related crimes include hacking, Automated Teller Machine (ATM) fraud, conspiracy, among others.
Olukayode revealed: “And the absurd one is when there is collaboration between the both of them. It is estimated that about seventy percent of financial crimes in Nigeria are traceable to the banking sector, this scenario is disturbing and unacceptable.”
He underscored the multifaceted responsibilities of internal auditors in the financial sector, from risk assessment and fraud prevention to enhancing operational efficiency.
He also emphasized the importance of their role in providing strategic decision-making insights and promoting stability in the financial system.
He noted that, “The role of Chief Audit Executives in the fight against corruption is enormous.
“Every audit engagement promotes management of economic entities and the society as a whole. Globally, the most effective measures against financial practices are prevention strategies owing to their cost-effective benefits.
“The Chief Audit Executives should consider how risk of fraud is managed across the organisation and assess the fraud risk exposure periodically.”
The Chairman of ACAEBIN, Prince Akamadu, in his address reminded players in the sector of the need for introspection within the banking industry and a reassessment of their role in addressing challenges for economic growth.
On the cumbersome regulatory reporting processes, and how to address fraudulent calls claiming to be from banks and other related matters, Akamadu reassured that disciplinary committees address staff involvement in fraud, emphasising the industry’s commitment to maintaining its integrity.
He assured that, “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 the challenges in this industry given that it is multi-faceted, there’s no institution in any sector that has done more in the area of Know Your Customer (KYC) than the banking industry.”
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