Daud Olatunji
The Nigeria Deposit Insurance Corporation (NDIC) has emphasised the necessity for robust collaboration between law enforcement agencies to effectively tackle banking fraud in the country.
The Managing Director/Chief Executive of NDIC, Bello Hassan,stated this during the annual capacity-building workshop for law enforcement agents held in Lagos on Thursday.
Represented by the NDIC Director of Communication & Public Affairs, Bashir Nuhu, Hassan acknowledged the challenges faced in investigating and prosecuting financial malpractices and bank fraud cases.
He assured the agencies of NDIC’s unwavering support, emphasising the critical role of understanding the rapidly evolving financial technology landscape.
“We are not unaware of the challenges of investigating and prosecuting financial malpractices and bank fraud cases but wish to urge you not to relent on your efforts and be rest assured of our unflinching support at all times,” Hassan stated.
He highlighted the importance of such workshops in helping law enforcement officers stay abreast of the dynamic operating environment and the various types of fraud prevalent in the banking sector.
Hassan also noted the proactive measures implemented by regulatory and supervisory agencies, which are starting to yield positive results.
These measures are aimed at strengthening risk management practices within banks and financial institutions to prevent the loss of funds and maintain depositor confidence in the banking system.
“The authorities are becoming more proactive with policies and examinations/investigations to ensure that the banks/financial institutions strengthen their risk management practices to prevent loss of funds and maintain depositors’ confidence in the banking system,” he added.
He acknowledged that advancements in information technology, while offering new opportunities in banking operations, also pose emerging threats that require enhanced operational capacities from regulators and supervisors.
In his welcome address, the Head of the NDIC Legal Department, Henry Fomah, reiterated the need for improved collaboration to combat financial crimes, particularly insider fraud.
Fomah underscored the corporation’s commitment to building the capacity of law enforcement agencies and collaborating with other entities to achieve timely and effective results in the fight against financial malpractices.
“It is worthy of note that the corporation, as part of its bank liquidation activities, has been in the vanguard of the investigation and prosecution of those found culpable in a bank failure,” Fomah remarked.
“This fight against insider abuses and financial malpractices in banks is not the task the corporation can carry out all alone, and that is why this year’s theme, ‘Effective Collaboration as a Strategy in the Fight Against Insider Abuses and Financial Malpractices in Banks and Other Financial Institutions in Nigeria’ is apt to emphasise the need for collaboration.”
The workshop also featured contributions from key figures in the financial and law enforcement sectors. Michael Wetkas, representing the Executive Chairman of the Economic and Financial Crimes Commission (EFCC), highlighted the alarming rise of insider fraud.
He cited a 2022 incident where bank staff colluded to illegally increase withdrawal limits on targeted accounts, resulting in significant financial losses.
“The laxity with which fintechs are allowed to operate creates fertile ground for fraud. Point-of-sale operators have also been observed to be a convenient source for getting money out of the financial system,” Wetkas stated.
He stressed the importance of preventive measures and the need for a culture of transparency, accountability, and resilience in the financial sector.
Further emphasizing the collaborative theme, the Assistant Inspector General of Police in charge of FCID Annex, Alagbon, Ikoyi, Lagos, Romokere Ibani, urged participants to work together to ensure the stability of the banking sector.
“There is every need for us to be more sceptical, more circumspect about our financial dealings with the banks. I charge all the agencies present here to work together to protect our banking system,” he said.
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