|
FRAUDS IDENTIFICATION, PREVENTION & CONTROLS IN MICROFINANCE BANKS |
| |
New!! |
|
|
|
Keen observers of developments in microfinance banks as published by some Nigeria dailies would have noted a disturbing frequency of reports of incidence of frauds in the financial institutions sub-sector. THISDAY in its publication of April 22, 2010 captioned ‘EFCC Arraigns 6 Bankers over N12.6m Fraud’’ reported that the anti-fraud Agency has arraigned six former bankers at an Abuja High Court for making fraudulent withdrawals from the accounts of six customers of Fortis Microfinance Bank Limited. Daily Sun on July 09, 2009 reported that some victims groan as thousands of depositors of Green House Microfinance, were swindled of millions of naira, leaving the victims in penury. In another report published on April 21, 2010 by Microfinance Africa, five members of an unnamed microfinance bank in Lagos were arrested by detectives of the Special Fraud Unit [SFU], of the Nigeria Police for defrauding customers to the tune of N60million. These are just few of reported cases while most of the frauds in the sector were largely unreported. |
|
|
|
The increasing incidence of frauds and the relatively large amounts involved, pose great challenges to the survival and viability of the financial sub-sector. Thus the need for the stakeholders to have a good understanding of what constitute frauds, how they are committed or perpetrated, and the preventive and control measures to put in place to guard against their perpetrations cannot be over-emphasized. |
| |
|
Read more...
|
|
|
CORPORATE GOVERNANCE CODE FOR MICROFINANCE BANKS : |
| |
ESSENTIAL REQUIREMENTS FOR NIGERIA BANKS |
|
| |
1.0 INTRODUCTION |
|
|
|
Recent disclosures by the Central Bank of Nigeria[CBN] of the large scale mismanagement and gross insider abuses in some of the universal banks taken over by the regulatory authority further strengthened the need for institutionalizing sound corporate governance in every financial institution. Given the large number of over 900 licensed microfinance banks, and the scanty but disturbing public information available on the governance practices in some of those banks, the need for the regulatory authority to establish and enforce implementation of effective guidelines for corporate governance code for this category of banks cannot be over-emphasised. |
|
|
|
This paper examines the salient provisions in the operating guidelines on corporate governance issued by the CBN; suggest other issues that need to be addressed in the proposed guidelines; identify the major facilitators and expected deliverables for ensuring that the objectives of the guidelines are achieved; and also suggest appropriate sanctions for violations. |
| |
|
Read more...
|
|
|
