The Economic and Financial Crimes Commission (EFCC) has urged bank auditors to be more proactive and vigilant in combating financial crimes in the banking sector, which accounts for an estimated 70% of such crimes in Nigeria.
The Executive Chairman of the EFCC, Mr. Ola Olukoyede, made this call on Monday, March 4, 2024, at the 2024 Annual Retreat of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBI) in Abuja.
Olukoyede who spoke through the Director of Internal Audit of the Commission, Idowu Oluwole-Apejoye, expressed his displeasure at the rampant fraudulent activities in the local banking industry and tasked bank auditors to play a key role in sanitizing and strengthening the financial sector and the economy.
He said that banking fraud in Nigeria was facilitated by both insiders and outsiders.
He explained that insiders were involved in stealing customers’ deposits, authorizing illegal loan facilities, forging documents, and other criminal practices while Outsiders, on the other hand, were engaged in hacking, ATM fraud, conspiracy, and other forms of cybercrime.
The EFCC boss added that the most absurd cases were those where insiders and outsiders collaborated to defraud the banks and their customers.
Speaking further, Olukoyede called for a combination of preventive and detective measures to effectively manage and reduce bank frauds.
He said that bank auditors were vital in the fight against economic and financial crimes as they were the gatekeepers of responsible financial conduct, compliance with regulations, and efficient functioning of the financial services industry.
He also solicited for more cooperation from bank auditors with the EFCC. He said that the retreat was an opportunity for them to review the developments in the financial sector and offer sound recommendations to the EFCC on how to curb the rising cases of financial crimes in the banks.
He also urged them to always contact the Commission on any issue that was relevant to addressing corruption not only in the financial sector but in all other areas of the country.
The EFCC’s charge elicited a lot of questions and feedback from the bank auditors, who shared their experiences and challenges with fraud investigations by the Commission.
Apejoye however, responded to their queries and encouraged them to work more closely with the Commission.
“We should all be ready to play our parts in tackling the monster of corruption in the banking sector. Collaboration and cooperation with the EFCC will boost all efforts at breaking the fang of fraudulent practices in the sector”, she said.
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