EFCC Indicts Banks, Alleging Connection to 70% of Financial Crimes in Nigeria

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The Economic and Financial Crimes Commission (EFCC) recently shed light on a concerning issue, implicating Nigerian banks in a significant portion of the nation’s financial crimes.

At the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN), EFCC Chairman Ola Olukayode revealed that an alarming 70% of financial crimes in Nigeria originate from the banking sector.

Representing Olukayode, EFCC’s Director of Internal Audit, Idowu Apejoye, underscored the prevalence of fraudulent activities within banks, citing various internal and external factors contributing to the problem. These factors include unauthorized use of customer deposits, loan facilities, forgery, hacking, ATM fraud, and collision involving both bank staff and external parties.

The EFCC chairman stressed the urgent need for collaborative efforts among regulatory bodies, banking professionals, and audit executives to effectively combat fraudulent practices. Olukayode urged ACAEBIN to enforce rigorous measures such as regular reconciliation of accounts, monitoring financial activities, and conducting periodic reviews to ensure transparency and integrity within the banking sector.

In response, ACAEBIN Chairman Prince Akamadu acknowledged the severity of the situation and assured the EFCC of the association’s commitment to addressing the challenges outlined. Akamadu emphasized the importance of self-regulation and proactive measures to mitigate financial crimes, pledging to implement robust Know Your Customer (KYC) mechanisms and enhance internal controls within the banking sector.

The EFCC’s revelation highlights the critical need for increased vigilance and regulatory oversight to preserve Nigeria’s financial integrity and restore public trust in the banking system. It calls for concerted efforts from all stakeholders to address these issues effectively and safeguard the nation’s economic interests.