The Economic and Financial Crimes Commission (EFCC) has revealed that approximately 70 percent of financial crimes in Nigeria are connected to banks.
Financial crimes are acts that involve the illegal use of cash or financial instruments such as cheques, drafts, money orders, etc. For example, bank fraud, issuance of dud cheques, etc.
The Chairman of the commission made the revelation during his address at the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria, in Abuja on Monday.
According to him, the banking industry was becoming more characterized by fraudulent activities, posing significant challenges and concerns for the commission.
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Olukayode, represented by EFCC’s Director of Internal Audit, Idowu Apejoye, emphasized the importance of collaborative actions from relevant authorities and industry professionals, particularly audit executives, to proactively address and combat fraudulent activities within the sector.
“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 said.
