EFCC Indicts Banks: Linked to 70% of Financial Crimes in Nigeria

The Economic and Financial Crimes Commission (EFCC) has made a startling revelation, implicating banks in Nigeria in a significant portion of the nation’s financial crimes.

During the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN), EFCC Chairman Ola Olukayode disclosed that approximately 70% of financial crimes in Nigeria are traceable to the banking sector.

Olukayode, represented by EFCC’s Director of Internal Audit, Idowu Apejoye, emphasized the disturbing prevalence of fraudulent activities within the banking industry.

He identified both internal and external factors contributing to banking fraud, including unauthorized use of customers’ deposits, loan facilities, forgery, hacking, ATM fraud, and conspiracies involving bank staff and outsiders.

The EFCC chairman highlighted the urgent need for collaborative efforts among regulatory authorities, banking professionals, and audit executives to combat fraudulent practices effectively.

Olukayode urged ACAEBIN to enforce stringent measures such as regular reconciliation of accounts, monitoring financial activities, and conducting periodic reviews to uphold transparency and integrity within the banking sector.

In response, ACAEBIN Chairman, Prince Akamadu, acknowledged the gravity of the situation and pledged the association’s commitment to addressing the challenges outlined by the EFCC.

He emphasized the importance of self-regulation and proactive measures to mitigate financial crimes, assuring the EFCC of the banking sector’s dedication to implementing robust Know Your Customer (KYC) mechanisms and enhancing internal controls.

The EFCC’s indictment underscores the imperative for heightened vigilance and regulatory oversight to safeguard Nigeria’s financial integrity and restore public trust in the banking system.