Insider Connections Facilitate Most Banking Frauds — EFCC

Mr Bawa Usman, Zonal Head of the Economic and Financial Crimes
Commission (EFCC), in Sokoto, has said that insider connections
facilitate most financial frauds in the banking industry.

Bawa, whose zone covers Sokoto, Kebbi and Zamfara States, stated
this on Tuesday in Sokoto at a roundtable with Compliance Officers
of various commercial banks.

He said that the meeting was convened to strengthen relationship
and collaborations between the EFCC and commercial banks as a way
to sanitise the system against frauds.

The Zonal Head said that the commission often encounter delay in
getting responses to investigation letters forwarded to banks.

“Such delays jeopardise our investigation. Financial
institutions must collaborate with us toward curtailing money
laundering, illegal financing and other illicit flows of money.

”The meeting is a response to the directive of the EFCC
leadership. It is one of numerous strategies toward fighting all
manners of corruption.

”The commission strives to ensure that fraudsters do not get
away with proceeds of crimes undetected. To achieve this, we are
appealing to all banks to facilitate better working relationship
with the anti-graft agency.”

He enjoined bankers to improve on ways of tracking illicit
finances and transactions, stressing that Point of Service
Operators (POS) or money agents needed to be well informed on
financial regulations.

Usman further urged banks to put more effort toward ensuring
that eligible bank customers obtained Special Control Unit Against
Money Laundering (SCUML) numbers, and stressed the need to review
their data registers to ensure compliance.

He called for complete investigation of cases rather than
stopping half way, noting that complete checks usually offer
opportunity to know how frauds happened and the best way to avoid
recurrences.

He expressed disappointment with the idea of opening bank
accounts with mere phone numbers, arguing that nearly 40 per cent
of Americans do not have accounts.

“Nearly 40 per cent of Americans do not have accounts. So, it is
not very compulsory for everybody in Nigeria to have a bank
account,” he said.

The officer advised banks to strictly monitor activities and
understand that regulations from the Central Bank of Nigeria (CBN)
do not supersede the money laundering act enshrined in the Nigerian
constitution.

Responding, a participant, Mr Jimoh Jamiu, from Fidelity Bank,
said that the banks were trying their best toward combating money
laundering.

Recall that discussions centred around bank compliance
techniques with the EFCC officials responding to various
questions

Mr Bawa Usman, Zonal Head of the Economic and Financial Crimes
Commission (EFCC), in Sokoto, has said that insider connections
facilitate most financial frauds in the banking industry.

Bawa, whose zone covers Sokoto, Kebbi and Zamfara States, stated
this on Tuesday in Sokoto at a roundtable with Compliance Officers
of various commercial banks.

He said that the meeting was convened to strengthen relationship
and collaborations between the EFCC and commercial banks as a way
to sanitise the system against frauds.

The Zonal Head said that the commission often encounter delay in
getting responses to investigation letters forwarded to banks.

“Such delays jeopardise our investigation. Financial
institutions must collaborate with us toward curtailing money
laundering, illegal financing and other illicit flows of money.

”The meeting is a response to the directive of the EFCC
leadership. It is one of numerous strategies toward fighting all
manners of corruption.

”The commission strives to ensure that fraudsters do not get
away with proceeds of crimes undetected. To achieve this, we are
appealing to all banks to facilitate better working relationship
with the anti-graft agency.”

He enjoined bankers to improve on ways of tracking illicit
finances and transactions, stressing that Point of Service
Operators (POS) or money agents needed to be well informed on
financial regulations.

Usman further urged banks to put more effort toward ensuring
that eligible bank customers obtained Special Control Unit Against
Money Laundering (SCUML) numbers, and stressed the need to review
their data registers to ensure compliance.

He called for complete investigation of cases rather than
stopping half way, noting that complete checks usually offer
opportunity to know how frauds happened and the best way to avoid
recurrences.

He expressed disappointment with the idea of opening bank
accounts with mere phone numbers, arguing that nearly 40 per cent
of Americans do not have accounts.

“Nearly 40 per cent of Americans do not have accounts. So, it is
not very compulsory for everybody in Nigeria to have a bank
account,” he said.

The officer advised banks to strictly monitor activities and
understand that regulations from the Central Bank of Nigeria (CBN)
do not supersede the money laundering act enshrined in the Nigerian
constitution.

Responding, a participant, Mr Jimoh Jamiu, from Fidelity Bank,
said that the banks were trying their best toward combating money
laundering.

Recall that discussions centred around bank compliance
techniques with the EFCC officials responding to various
questions