Angst over Rising Employees’ Frauds in Banks

Occupational fraud, mostly through employee theft, is a growing problem for financial system in the country according to Martins Ndigwe, counterparty risk management and financial analyst.

He said that preventable internal frauds ranging from falsified loan documents; asset misappropriation; fraudulent statements; and theft of customers money are committed daily in the banking ecosystem.

According to him, despite the fact that internal fraud is a much larger problem, banks have continued to pump millions on external prevention fraud applications.

He said that the employee most likely to commit internal fraud in a bank frequently holds a position of trust, has greatest opportunity, is least suspected, and has little or no supervision.

“Banks need to fortify themselves internally first because a well schemed internal fraud can take a bank up to 12 months to detect and by that time, damages have been done” Ndigwe added.

Ndigwe, who is also CEO of Mayakorp limited which provides end to end converged communication and infrastructure solutions said that banks urged Nigerian banks to implement global risk management standards.

“For me, the answer lies in ANADEFI Banks , solution for counterparty risk management, financial analysis and internal rating, specifically conceived for banks and financial institutions, this is because while keeping an eye on their employees, banks can obtain comprehensive view of all their customers financing requests and deal with them in a faster and more reliable way than before through the automation of their financial analysis processes”

He said the solution is flexible, easy to implement, even for complex projects and gives banks the possibility to obtain traceable and qualified information, track them very closely, store them in a unique repository, realize efficient and reliable financial analysis, and make their internal rating systems evolve easily

His words, “The solution is fully compliant with Basel II and III and combines external, internal, financial and non-financial data into a single repository for counterparty rating and gives a better understanding of risk origination
   
Standardizes financial analysis and counterparty rating practices within a centralized solution which is robust, flexible and scalable (multi industry, multi financial statements, etc.) and easily maintains rating models and reduces the time to market of the rating model validation to its implementation” he added.

Ndigwe said that ANADEFI is a standard solution and its parameters can be entirely set: rating and score criteria are defined by banks within the Basel II and III framework and don’t affect the source code of the software. 

In addition,  he said that ANADEFI is a multi-lingual and multi currencies software that can be adapted in Nigeria and can interface with the main accounting and financial companies’ databases such as Alatres, Dun & Bradstreet, Coface – SCRL, BIL, Bilans Services, Sisyphe.