EFCC Reveals Alarming Link Between Banks and 70% of Financial Crimes in Nigeria

The Economic and Financial Crimes Commission (EFCC) dropped a bombshell on Monday, implicating banks in approximately 70% of financial crimes plaguing Nigeria. Chairman Ola Olukayode made this revelation during the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria.

Olukayode, represented by EFCC’s Director of Internal Audit, Idowu Apejoye, expressed grave concerns about the escalating fraudulent activities within the banking sector. He stressed the urgency for collaborative efforts among authorities and professionals, particularly audit executives, to combat and prevent fraudulent practices.

“Broadly speaking, banking fraud in Nigeria encompasses both internal and external factors, ranging from outright selling of customers’ deposits to hacking and conspiracy. An alarming 70% of financial crimes in Nigeria can be traced back to the banking sector, a scenario deemed disturbing and unacceptable,” remarked Olukayode.

To address these anomalies, Olukayode called upon the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) to ensure monthly reconciliation of accounts in line with accounting standards. He urged the association to monitor financial activities, conduct regular reviews, and checks, emphasizing the need for a proactive stance against fraudulent practices.

Prince Akamadu, Chairman of ACAEBIN, pledged the association’s commitment to implementing EFCC’s recommendations. He highlighted the retreat’s focus on resolving foreign exchange challenges in Nigeria and emphasized the industry’s dedication to combating fraudulent activities through robust Know Your Customer (KYC) mechanisms.

Akamadu stated, “I’m not aware of any institution or sector that has done more in the area of KYC than the banking industry. We are actively addressing potential leakages and collaborating at various levels to fortify our defenses against fraud.”

He assured the EFCC boss that the banking industry, through ACAEBIN, was diligently working towards addressing concerns and promised positive outcomes in the ongoing battle against financial crimes.