CIBN Moves to Combat Financial, Economic Crimes
The current challenge of financial and economic crimes, which remains a topic of fundamental interest to financial institutions and stakeholders in the Nigerian economy, was the thrust of a recent conference organised by the Chartered Institute of Bankers of Nigeria (CIBN). Amarachukwu Ona reports
Penultimate week ago, the Chartered Institute of Bankers of Nigeria (CIBN) made a move to articulate the strategies and most effective procedures for combating financial and economic crimes in Nigeria.
The conference with a theme "Waging the War Against Financial and Economic Crimes in the Nigerian Economy", wants to ensure that the conference will assist in re-positioning various organsiations towards fighting the war.
Given the adverse implications of economic and financial crimes for the growth and development of the financial sector and macro-economy, the conference provided an opportunity for various stakeholders in the Nigerian economy to assess the achievements recorded so far in the fight against financial and economic crimes and to reinforce the strategies to enhance the nation.
The President of CIBN, Mr. Samuel Kolawole recalled that the enormity of resources being employed by fraudsters in perpetrating financial and economic crimes can be overwhelming and this has made it easy for fraudsters to beat the law enforcement agencies and judicial system with relative ease.
Kolawole urged bankers to see the challenge of combating financial and economic crimes as a "herculian" task on their shoulders.
He added that with the recent establishment of the Economic and Financial Crimes Commission (EFCC), the Nigerian business arena has become a hot bed for fraudsters to operate.
"The need to plug all loopholes to ensure that such nefarious activities do not pass through the banks cannot be over-emphasised.
"We as bankers therefore have the collective responsibility to guard against such ignoble acts not only by ensuring strict compliance with guidelines but also by mounting adequate internal control measures to checkmate such unholy activities", he said.
Speaking on the topic, "Anatomy of Financial and Economic Crimes in Nigeria's Business Environment", the Executive Chairman, Economic and Financial Crimes Commission, Mallam Nuhu Ribadu pointed out that financial institutions are vulnerable to incidence of economic and financial crimes because of the following factors among others; poor regulatory and supervisory framework, harmful tax practices, insider abuse and lack of due diligence compromises the integrity of financial institutions.
Ribadu noted that inspite of all enabling laws and the relevant institutions to curb financial and economic crimes in Nigeria, fraudulent activities still thrive in the country.
He said EFCC as the financial watchdog of the Nigeria's business environment is doing every thing possible within its powers and mandate to see that Nigerian business environment gets a zero fraud tolerance level rating within the next few years.
Also speaking on the "Creating Effective Legal and Regulatory Environment to Check Economic Crimes: Issues Involved", the Head, Litigation Department, Nigeria Law School, Mr. Kelvin Nwosu observed that the apparent inability to effectively check economic and financial crimes rests squarely in the institutional weaknesses existing in our polity.
"It is sad that corruption and corrupt practices have weakened most institutions in our national life such that the country is now ranked the second most corrupt nation in the world. In fact, the problem is so bad and pervasive now that the average Nigerian can be said to be suffering from AIDS (Acquired Integrity Deficiency Syndrome)", he said.
He stressed that lack of political will on the part of most past governments is another major problem with the fight against economic and financial crime.
He explained that the experience has been that most times institutions and agencies responsible for the detection and prosecution of the crimes have not received the requisite infrastructure for the effective discharge of their duties.
"These infrastructures include appropriate staff, equipment and other resources", he added.
Obaedo maintained that to create an effective legal and regulatory framework therefore, that it is necessary to go beyond statutory prescriptions.
Government, he emphasised must address other social, political and economic problems that either lead to the perpetration of these crimes or weakens the machinery for detection, prosecution and punishment of the crimes.
The Coordinator, Financial Malpractices Investigating Unit, Mr. Austin Obaedo, while speaking on "Case Studies on Financial and Economic Crimes: The Nigeria Police Experience", urged that the Central Bank of Nigeria (CBN) and other regulatory bodies must strive for and get the support, cooperation and encouragement of the federal government to continue and revamp their cleaning-up operations to rid the financial systems of all forms of financial crimes.
Obaedo listed the financial crimes to include money laundering, foreign exchange malpractices, round tripping, fraud or dishonesty, e-crime, fraudulent marketing of investment and criminal market conduct including insider trading.
According to him, the rationale for this clarion call is to ensure that the financial system, which is the live wire of any nation's economy will not be riddled with sharp practices.
"Our banks, insurance firms and capital market have a duty to be efficient, innovative and transparent to be able to compete meaningfully in the international financial system.
"At this juncture, the regulatory bodies, CBN, NDIC, the National Insurance Commission, the Security and Exchange Commission (SEC)and the EFCC should sharpen their regulatory and supervisory focus on the financial system from their respective perspectives. They need to be more proactive in maintaining confidence in the system as well as ensuring the achievement of international standards" he said.
The Country Representative, United Nations Office of Drug and Crimes, Ambassador Paul Salay, while speaking on "International Best Practices in Financial and Economic Crimes Management", observed that if Nigeria will embrace some of the international best practice already put in place to checkmate financial and economic crimes that the integrity of our nation and its financial institutions would be greatly enhanced.
Salay also noted that this would definitely increase investors' confidence, which will result in the influx of foreign investment in our economy.
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