THE Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukayode, has disclosed that banks in Nigeria are linked to about 70 per cent of the financial crimes in the country.
Speaking in Abuja at the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria, Olukayode said banking sector was increasingly becoming a cesspool of fraudulent activities, thereby raising considerable challenges and concerns to the Commission.
The EFCC boss, who was represented by the Commission’s Director of Internal Audit, Mr. Idowu Apejoye, stressed the need for concerted effort by relevant authorities and professionals, especially audit executives, to prevent and tackle issues of fraudulent practices in the sector.
He added: “Broadly speaking, banking fraud in Nigeria is both inside and outside related. The inside related fraud comprises outright selling of customers’ deposits, authorising loan facilities, forgery and several other kinds of unhealthy and criminal practices.
“The outsider related ones include hacking, ATM fraud, conspiracy, among others. And then the absurd one is when both collaborate, that is collaboration among the bankers and the outsider.
“That one is the one that is really absurd because when you do that, that means you are selling out the system.
“It is estimated that about 70 per cent of financial crimes in Nigeria are traceable to the banking sector. This scenario is disturbing and unacceptable.”
Olukayode charged ACAEBIN to ensure proper reconciliation of accounts every month in accordance with accounting requirements in order to curb the situation, urging the association to monitor the financial activities of banks, comparing actual and budgeted revenue with expenses, carry out periodical review and checks, among others.
