FRAUD ELIMINATION IN NIGERIAN BANKING INDUSTRY,. A RESEARCH PROJECT MATERIAL ON ACCOUNTING
ABSTRACT
Bank deals mostly in cash, financial instrument which are generally of a negotiable and easily transferable nature. Hence, it is very imperative to say that the exposure of Banks to both internal and external fraud is very great. This pradice always common to areas involving cash, cheques, and fund transfer, operations.Much research and thought are increasingly being directed towards the study of the causes of fraud in banks because of its effects on banking and the entire economy.In the past, study carried out by financial institutions training center, Lagos showed that causes of fraud reported annually between 1996 – 2000 was about 500 and annual average money involved in attempted fraud was thirty – three million naira.Chapter one of this work deals with the introduction of what is all about Chapter two of this work did an analysis of financial fraud by examining the methods uses by fraudsters in defrauding the banking industries. It established that falsification of accounts and forged cheques and signatures ranked highest and emans of perpetrating fraud.And examination of categories of persons involved on the perpetration of fraud reveals that banks staffs are the majority.
It also discussed the technique for the elimination of frauds which includes:
- The adoption of constant and consistent inspection of banks operation.
- Organisation of seminars, workshops symposis etc. on fraud control for this employees.
Government should raise an eyebrow and at the same time endeavour to eradicate the end for instance the C.B.N act of 1958. Banking act 1969 and law of forgeries with their subsequent amendment is authentic to constitute adequate ways of eliminating fraud.For instance, S.29 of 1969 Banking act stipulates, “any director of employee of a licensed bank or other person receiving remuneration from such licensed Bank or ask or agree to receive any gift, commission, emoluments, services, gratuity, money property or things of value for his/her personal benefits or advantage or to that of any of higher relation from any person other than from the bank for permitting any to withdraw any account will be guilty of offence and shall be liable for imprisonment not exceeding (3) years or fine of not more than N2000.Moreover, government have to ensure that police and legal authorities are very serious in the discharging of their duties and ensure that fraudsters are given adequate punishment.Hence one cannot say who and who is a fraudster by facial looking what it means in effect is that every new employee must be forced to give time background information of themselves while dealing with recruitment form.Finally, Banks should endeavour to go into computer system to ensure that the incidence of fraud is eliminated.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY.
Fraud has no definite accepted definition and it is limitless in classification. No wonder why house of Lord and writers of fraud always gives way from giving a decisive definition to it. But it is very important to look into other writers just to see how they give their own definition of fraud.
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