NDIC Calls for Improved Collaboration to Curb Banking Fraud

Nume Ekeghe

The Nigeria Deposit Insurance Corporation (NDIC) has called on law enforcement agencies to enhance their collaboration to combat banking fraud across the country.

NDIC Managing Director/Chief Executive, Bello Hassan, who was represented by NDIC Director of Communication and Public Affairs, Bashir Nuhu, made this call during the annual capacity-building workshop for law enforcement agents held in Lagos recently, emphasising the critical role of cooperation in tackling financial crimes.

Hassan said: “We are not unaware of the challenges of investigating and prosecuting financial malpractices and bank fraud cases but wish to urge you not to relent on your efforts and be rest assured of our unflinching support at all times.”

Addressing the evolving nature of the banking system, Hassan said: “The banking system is rapidly evolving with innovations; it is clear that a new phase of the financial technology-driven economy is currently reshaping the global financial services space. With this development, the criminally-minded users of the banking system, including the notorious ‘cyber criminals,’ are busy perfecting their misplaced skills. This is why workshops like this are necessary to enable law enforcement officers to understand the dynamic operating environment. The law enforcement officers must acquaint themselves with basic knowledge of the types of fraud prevalent in our banks.”

He highlighted the positive impact of measures implemented by regulatory and supervisory agencies, stating, “The authorities are becoming more proactive with policies and examinations/investigations to ensure that the banks/financial institutions strengthen their risk management practices to prevent loss of funds and maintain depositors’ confidence in the banking system.”

On the increased threats posed by advancements in information technology, he added: “The advancements in information technology that open new possibilities and vistas in banking operations have equally exposed the banking subsector to emerging threats. This situation increases the burden on the regulators and supervisors to enhance their operational capacities. It has also heightened the need for more collaboration between agencies involved in the fight against banking malpractice.”

The NDIC boss also underlined the importance of continuous adaptation and staying informed in the face of rapid technological changes.

He further added: “Change is the only constant thing in life. Most changes in human endeavours come through developments in sciences, technology, or innovation,” noting that the NDIC in collaboration with law enforcement agencies has 14 ongoing prosecution cases in various courts: 18 ongoing investigations with the Financial Malpractices Investigation Unit (FMIU), eight with the Economic and Financial Crimes Commission (EFCC), and nine concluded investigations with the Federal Ministry of Justice awaiting advice and prosecution.

“The Corporation, as a key participant in the financial safety-net, has over the years taken the fight against insider abuses and financial malpractices in banks very seriously. As you all know, a safe and sound banking environment is an essential ingredient of financial system stability, which of course is the bedrock for the economic development of every nation,” Hassan said.