Nigeria’s central bank to sanction banks for failing to report fraud-related cases

Nigeria's central bank goes tough on banks over failure to report fraud-related cases

Godwin Emefiele, CBN Governor

Nigeria's central bank will sanction commercial banks that failed to report fraud-related cases and refused to enhance reporting on fraudulent and criminal activities.

Sam Okojere, the CBN's Director, Payment System Management Department and Chairman of the Nigerian Electronic Fraud Forum (NeFF), disclosed this at the annual dinner of the group in Lagos over the weekend.

The CBN official said the apex bank will no longer condone failure on the part of the financial institutions, ThisDay reports.

Okojere said banks must generate fraud data by reporting incidents and handle it in such a way that the information generated will help in understanding and addressing customer needs.


A system where participants fail to report fraud as captured by the relevant CBN directive will no longer be condoned.

“We must also pay attention to risk management and embark on aggressive fraud awareness campaigns in the days ahead in order to boost customers’ confidence,” ThisDay quoted him saying.

Nigerian banks lost 19.77 billion to fraud-related cases in H1 2018

In its economic report for the first half of 2018, released on Friday, November 2, 2018, Nigerian banks recorded 20,768 fraud-related cases costing them N19.77 billion in the first 6 months of 2018.

According to the apex bank, the reported fraud and forgery incidences were perpetrated by both bank staff and non-bank culprits.


In the period under review, the actual loss by banks to fraud and forgery, however, amounted to N12.06 billion, compared with the N0.78 billion and $0.03 million, suffered in the first half of 2017.

Last year, the Central Bank of Nigeria (CBN) directed deposit money banks and other financial institutions to monitor accounts of customers where fraudulent activities are suspected.

The apex bank said commercial banks have the right to bar a watch-listed customer from opening an account or using its electronic service in a regulatory framework for BVN operations and watch-list for the banking industry.


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