Financial malpractices in banks: NDIC renews collaborative efforts with law enforcement agencies

THE Nigeria Deposit Insurance Corporation (NDIC) has reiterated its commitment to the success of collaborative efforts with Law Enforcement Agencies.

This was displayed through the 2024 capacity building workshop for for the agencies with whom the Corporation callaborates in the fight against financial malpractices in banks and other financial institutions in Nigeria.

In his keynote address, Managing Director/Chief Executive Officer NDIC, Hassan Bello disclosed that through the corporation’s collaborative efforts with law enforcement agencies, fourteen (14) prosecution cases are on-going at various courts.

He also said there is18 on-going investigation with the Police Financial Malpractices investigation Unit (FMIU) under the Failed Banks Act, eight (8) with the Economic and Financial Crimes Commission (EFCC) and nine (9) concluded investigations with Federal Ministry of Justice for advice and prosecution.

These, according to him, are indications that “we are on the right course.”

During the opening ceremony of the workshop for law enforcement agencies held in Lagos on Thursday, Bello said the banking system is rapidly evolving with innovations.

According to him, there is no gainsaying that, this collaboration has yielded and is still yielding results particularly in the area of investigation and prosecution.

In line with similar initiatives by the Corporation, the workshop aims to complement the efforts of the Inter-Agency Task Force on the Implementation of Failed Banks Act.

It is clear he added, 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,” he said.

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,” stated.

Represented by the Director Communications and Public Affairs, NDIC, Mr Bashir Nuhu, Bello said the theme for this year’s Workshop, “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 the resolve at previous workshops to unite in the fight against menace 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 the banking system.

Earlier in his welcome address, the head of legal department NDIC, Henry Fomaj reiterated that the Corporation as part of its bank liquidation activities has been in the vanguard of investigation and

prosecution of those found culpable in a bank failure.

The workshop he said is a yearly program aimed at equipping the officers involved in the investigation and prosecution of financial malpractices in banks with necessary skills required to carry out their duties diligently with particular focus on failed banks.

According to Fomah, Section 77 (1) – (10) of the NDIC Act 2023 makes elaborate provisions for offenses, penalties and criminal prosecution of Directors, Shareholders and Officers or staff of banks in their dealings with the failed bank while Section 80 (1) of the Act empowers the Corporation to investigate in collaboration with the Nigeria Police Force or other law enforcement Agencies any person suspected of the commission of an offense under the Act or a regulation made under it.

The Corporation is therefore committed to building capacity of law enforcement agencies the Corporation collaborates with in the fight against financial malpractices to ensure that the desired results are achieved timely and effectively he stated.

Fomah added that  the  workshop provides participants the opportunity to acquire new skills and knowledge from well researched papers to be delivered by professionals in the field as well as provides a forum for physical interaction with colleagues in other Agencies.

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