EFCC: Banks are implicated in 70% of financial crimes

The Economic and Financial Crimes Commission indicted banks on Monday, claiming they were complicit in almost 70 percent of financial crimes in Nigeria.

This was disclosed by EFCC Chairman Ola Olukayode during the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria in Abuja.

He noted that fraud was becoming more prevalent in the banking sector, which was causing the commission to have major issues and concerns.Olukayode said that relevant authorities and professionals—especially audit executives—need to collaborate in order to stop and address fraudulent practices in the industry.

Olukayode was accompanied by Idowu Apejoye, Director of Internal Audit at the EFCC.”Generally speaking, there are external and internal factors that contribute to banking fraud in Nigeria,” he said.

Insider fraud includes the outright selling of customer deposits, approving loan facilities, forgeries, and a host of other unethical and unlawful practices.

The ones involving outsiders include hacking, ATM fraud, and conspiracy. When they collaborate, that is, when the outsider and the bankers collaborate, it is the most absurd scenario.That one in particular is especially absurd because it involves selling the system. Approximately 70% of financial crimes in Nigeria are believed to be the result of the banking sector; this is a concerning and unacceptable situation.Olukayode stated that in order to put an end to the irregularities, ACAEBIN should ensure that accounts are correctly reconciled each month in accordance with accounting regulations.

He assigned the team the responsibility of monitoring the financial operations of banks, which included, among other things, performing routine reviews, verifying, and contrasting projected and actual revenue with outlays.

The chairman of ACAEBIN, Prince Akamadu, declared that the group would try to put some of the recommendations made by the EFCC chief into practice.He continued by saying that discussing the association’s unwavering commitment to solving Nigeria’s foreign exchange issues was one of the retreat’s objectives.

This is part of the reasoning for our retreat: we want to consider whether we are doing enough in our capacities as executives in Nigerian banks or the banking sector.”Did we make enough progress? What more can we do to assist with the sanitization efforts of the system? Do the banks have any options for helping to clean up this country’s foreign exchange?

The statement states, “By the end of this retreat, we hope to address some of the issues, one way or another, that will address the role of banks in FX challenges in this industry.”Akamadu continued by saying that rather than doing nothing to halt fraudulent activity, banks were attempting to enhance the Know Your Customer system.

“Let me tell you something: compared to other sectors or organizations that I am aware of, the banking industry has advanced further in the area of KYC.

However, it truly goes beyond the banks.”And I can tell you again with complete certainty that these are the areas we are actually looking at to see where there are leakages and to start blocking them,” he said, referring to both the standard information about Nigerian banks and the bankers committee.

He told the EFCC chief that the association was working around the clock to address these concerns and promised more positive results in the future.