Home Analysis Crack down on bank frauds

Crack down on bank frauds

by Business News Report

Banks operating in country are not set to check the increasing wave of frauds in the banking industry.
In pursuance of this objective, the bankers committee, made up of the chief executive of the banks in Nigeria and chair by the government of the Central Bank, have its 146th meeting proposed stern measures to be taken against fraudulent bankers.
According to the Banker’s committee memoranda, names of dismissed staff of banks will henceforth be circulated to member banks, guide them in their recruitment exercise.
Also strict disciplinary actions are to be taken against fraudulent bank staff to serve as deterrent to others while the institute of bankers will henceforth blacklists such dismissed staff of banks. According to the committee’s recommendation date of the dismissed bank staff and those forced to resign will be maintained by the bankers’ committee secretariat bankers. Also ex-bank staff will only be employed on receipt of satisfactory reference from previous bank where they worked.
According to a memoranda submitted by the Central Bank to the Banker’s committee for consideration, the premier bank is proposing that no person should be employed in a bank without satisfactory reference from the employ(s).

The bank is insisting that where a person who was dismissed by any bank is discovered to be employed by another bank, the immediate termination should be made mandatory, unless the new employer bank proves to the Central Bank that the employment of the person considered is absolutely justified.
According to CBN recommendation, any person whose appointment was terminated or who was forced to resign or retire from the service of a bank should not be employed in any bank without reference to the bank on dismissed/terminated staff at the secretariat of the bankers’ committee. In order to enforce compliance by the bank the CBN is to penalise any bank that fails to render the required returns of dismissed staff who lost their service each month as a result of dismissal or forced resignation/retirement.
According to CBN source, the monetary authorities, have become concerned over scores of frauds and forgeries that are being pushed through the banking system.
Frauds and forgeries it was gathered now …..all aspects of the banking industry, including foreign exchange transactions, clearing of cheques, treasury bills. The quantum as well as the sophistication of perpetration are assuming alarming proportions.
In consequences, the monetary authorities as well as the management of the various banks are becoming gravely concerned.
According to CBN sources, hardly any bank frauds or forgeries succeeds without the participation of insiders according to the CBN too frequent incidents of fraud/forgeries are most likely to impair confidence in the banking system and that will be exceedingly bad for the industry.
The CBN further argued that since mot of bank frauds/forgeries cannot succeed without insider participation involvement or connivance, it is essential that all those who work in banks should be of impeccable character. The CBN further stressed that it cannot be an over statement that banks should be regards as their greatest asset the integrity of their staff.
Security agencies at the weekend expressed satisfaction at the concerted efforts being made by the banks to collectively fight fraud within their rank and file.

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