Managing Director/ Chief executive Nigeria Deposit Insurance Hassan Bello in a keynote address stressed the need for Law Enforcement Agencies with whom the Corporation callaborates in the fight against financial malpractices in banks and other financial institutions in Nigeria.
In a capacity building workshop in Lagos, Bello maintained that
the Corporatrion as 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 economic development of every nation.”
In a press statement Bello stated that in line with Article 12 of the Core Principles of Effective Deposit Insurance which provides for every Deposit Insurer to put in place necessary mechanism of bringing to book parties found culpable in the failure of their bank or financial Institution.”
According to him, It is for this reason that the NDIC has been consistent since 2012 in organising this workshop to sharpen the skills of law Enforcement operatives and Officers from Regulatory Agencies that are involved in the investigation and prosecution of bank Directors, Managers and staff of banks involved in malpractices and insider abuses that might have led to the collapse of their banks or financial Institutions”
The workshop has been a flagship event organised by the Corporation annually to review the understanding and commitment to our mandate of ensuring a safe and sound banking in Nigeria.
It is to provide an avenue for sharing of ideas and to work together as a team and synergize efforts towards achieving a common goal of ensuring financial stability.
The theme for this year’s Workshop is Effective Collaboration as a strategy in the fight against insider abuses and financial malpractices in Banks and Other Financial Institutions in Nigeria” has been carefully crafted to re-echo our ealier resolve at our previous workshops to unite in the fight against menance of insider abuses and financial malpractices which is a major cause of bank failure, and if not tackled is capable of eroding public confidence in our banking system.
There is no gainsaying that, this collaboration has yielded and is still yielding results particularly in the area of investigation and prosecution.
He said that, in line with similar initiatives by the Corporation, this workshop aims to complement the efforts of the Inter-Agency Task Force on the Implementation of Failed Banks Act, and I want to believe that all the Agencies involved as members of the Task Force are being represented at this workshop.
The Corporation, whilst bearing in mind the positive impact of such collaboration will continue to strive at enhancing the synergy between all of us in the area of law enforcement relating to investigation and prosecution of financial malpractices. Please permit me to use this forum to appeal to the members of the Task Force not to relent on your oars but to execute the given mandate diligently thereby achieving the objectives of establishing the Task Force.
Through our collaborative efforts, I am aware that fourteen (14) prosecution cases are on-going at various courts, eighteen (18) on-going investigation with FMIU, eight (8) with EFCC and nine (9) concluded investigations with Federal Ministry of Justice for advice and prosecution. This is an indication that we are on the right course.
At this juncture 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.”
Banking system is rapidly evolving with new innovations, it is clear that a new phase of 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 nototrious ‘’cyber criminals’’ are busy perfecting their misplaced skills.
This is why workshops like this are necessary to enable law enforcement officers understand the dynamic operating environment.
The law enforcement officers must aquaint themselves with basic knowledge of the types of fraud prevalent in our banks.
We are quite aware of the efforts and measures put in place by the Regulatory/Supervisory Agencies to curb the activities of fraudsters in the system, and it is our firm belief that the efforts are yielding positive results.
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.
The above underscores the fact that banks and banking operations are becoming more vulnerable.
The advancements in information technology that opens new possibilities and vistas in banking operations has 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 malpractices.
This workshop is therefore among the steps taken to provide a platform for the Agencies concerned to sharpen their skills, share ideas and be well-equipped to face the challenges.
We recognize that, for the Corporation to achieve its mandate and objectives in a more efficient and effective manner, and for the banking system to thrive on the gains of a stable financial system, we must all rise up to the challenge of bringing to book those who might have contributed to the failure of their banks.
On this note, I would like to urge you all to participate actively in the deliberations, engage the facilitators in robust discussions so that at the end of the workshop you will come up with recommendations that will translate to actionable plans.
At this juncture, please permit me to once again thank the Chairman of the EFCC and the Assistant Inspector General of Police Force CID for your goodwill messages. I also thank the Facilitators who are here to share their knowledge and experiences on the assigned topics.
I hereby declare the workshop open and wish you all a very enriching workshop.
Present at the opening ceremony are Head Legal Department NDIC, Mr Henry Fomah; Director Legal Department CBN, Mr Kofo S. Alada; Rep of Chairman EFCC and Ag.Zonal Commander, Mr Michael Wetkas; Rep of MD/CEO (NDIC) and Director Communications & Public Affairs Dept, Mr Bashir A. Nuhu; AIG. Force CID, Alagbon, Romokere God’s Gift Ibani; Commissioner of Police SFU, Ayotunde G.Omedeinde; Rep of; Director of Public Prosecution of the Federation, Mr Emmanuel Kaswe; and Coordinator, FMIU, DCP Sirajo L. Salisu in a group photograph during the NDIC’s 2024 Capacity Building Workshop For Law Enforcement Agencies,”
