EFCC Urges Bank Auditors to strengthen vigilance Due to Rising Tide of Financial Crimes

In a bid to combat the rising tide of financial crimes within Nigeria’s banking sector, Mr. Ola Olukoyede, the Executive Chairman of the Economic and Financial Crimes Commission (EFCC), has urged bank audit executives to heighten their vigilance and assertiveness. Speaking at the 2024 Annual retreat of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBI) held in Abuja on Monday, March 4, 2024, Olukoyede underscored the critical role of bank auditors in sanitizing and fortifying the financial landscape to foster economic growth.

Olukoyede, represented by the Director of Internal Audit of the Commission, Idowu Oluwole-Apejoye, expressed concern over the prevalent fraudulent activities plaguing the local banking industry. He emphasized the necessity for auditors to be proactive in identifying and addressing both insider and outsider-related financial frauds. Insider-related frauds, including unauthorized loan facilities, forgery, and embezzlement, pose significant threats to the integrity of financial institutions. Meanwhile, outsider-related crimes such as hacking and ATM fraud further exacerbate the vulnerability of the banking sector. Olukoyede highlighted the gravity of collusion between insider and outsider perpetrators, emphasizing the need for a unified approach to combat such malpractices.

Collaborative Efforts for Sector Resilience

Recognizing the intricate nature of financial crimes, Olukoyede called for collaborative efforts between regulatory bodies, financial institutions, and law enforcement agencies to enhance the resilience of the banking sector. He emphasized the importance of information sharing and mutual cooperation in uncovering sophisticated criminal schemes that undermine the stability of the financial system. By fostering synergies among stakeholders, including auditors, bankers, and regulators, Olukoyede envisaged a more robust framework for combating financial crimes and safeguarding the interests of depositors and investors.

Moreover, the EFCC chairman stressed the imperative of leveraging technological innovations to bolster the detection and prevention capabilities of bank auditors. In an era marked by rapid digital transformation, he urged auditors to embrace cutting-edge tools and analytics to mitigate emerging risks associated with cyber threats and digital frauds. By harnessing the power of data analytics and artificial intelligence, auditors can proactively identify anomalies and suspicious patterns, thereby enhancing the resilience of financial institutions against evolving threats.

Call to Action: Empowering Bank Auditors

Mr. Olukoyede’s call to action underscores the pivotal role of bank auditors in safeguarding the integrity of the banking sector and fostering sustainable economic development. As custodians of financial probity, auditors play a vital role in instilling public trust and confidence in the banking system. Therefore, it is imperative for regulatory authorities and industry stakeholders to provide adequate support and resources to empower auditors in their fight against financial crimes. By fostering a culture of vigilance, collaboration, and technological innovation, Nigeria can fortify its financial ecosystem and propel inclusive growth and prosperity for all stakeholders.

EFCC Urges Vigilance in Banking Sector

In a recent address, the Economic and Financial Crimes Commission (EFCC) chairman, Abdulrasheed Bawa, highlighted the alarming statistic that an estimated 70 percent of financial crimes in Nigeria stem from the banking sector. He emphasized the need for concerted efforts from relevant authorities and professionals, particularly bank auditors, to combat and prevent fraudulent practices within the industry. Bawa stressed the importance of a combined approach, incorporating both preventive and detective measures, to effectively manage and mitigate bank frauds.

According to Bawa, bank auditors serve as crucial gatekeepers in the fight against economic and financial crimes, as they are responsible for ensuring responsible financial conduct, adherence to regulations, and the effective functioning of the financial services industry. He called for enhanced collaboration between bank auditors and the EFCC, urging them to provide valuable insights and recommendations to curb the rising cases of financial crimes in the banking sector.

Building a Stronger Alliance Against Corruption

In response to the EFCC’s plea for collaboration, there is a growing consensus among banking professionals on the need for a more cohesive approach to combat fraud. With the banking sector being a primary target for financial crimes, stakeholders recognize the urgency of bolstering preventive and detective measures to safeguard against fraudulent activities.

As audit executives and regulatory bodies intensify their efforts to strengthen oversight and compliance mechanisms, there is optimism for a more resilient and transparent banking environment. By fostering closer ties with the EFCC and fostering a culture of vigilance and accountability, the industry aims to mitigate the risks posed by financial crimes and uphold the integrity of Nigeria’s financial system.