Stronger collaboration needed to combat fraud, auditors tell banks

The Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) has called for a stronger collaboration between banks and auditors to combat fraud in the sector.

ACAEBIN is a sub-committee of the bankers’ committee of the Central Bank of Nigeria (CBN).

The association made this recommendation in the communique issued at the end of their annual general meeting held in Abuja on Thursday.

The week-long event was themed “The Role of the Internal Auditor in Promoting Stability in the Financial Services Sector and National Economic Growth”.

The association also called on banks to establish an assurance community of information security, internal audit, internal control/systems control, compliance and risk management departments that would collaborate regularly, share insights and monitor cybersecurity-related initiatives and projects.

Prince Akamadu, chairman of ACAEBIN, said the conference theme resonates deeply with the challenges and opportunities the banking industry is currently facing and by extension the economy.

“The past one year has witnessed a series of challenges in our economy which has impacted the living conditions of the generality of Nigerians and the banking industry is at the centre of the developments,” he said.

“As members of the third line of defence (the Internal Audit Function), we are expected to be proactive in our approach and support the efforts of the Central Bank of Nigeria in addressing the current challenges in the financial sector.

“For us to continue to play our part as valued stakeholders, it is pertinent that we take a critical look into the future and equip ourselves with those critical skills and resources that would enable us to perform our functions well, not just as gatekeepers but also as valued advisors to our organisations and the industry at large.”

According to Akamadu, the role of the banking sector was crucial in the Nigerian economy, adding that the retreat was part of the measures by the association to contribute to the discussion on ways of addressing the foreign exchange challenges in the country.

Mr Akamadu further noted that banks are not resting on their oars to curb fraudulent activities and that improving the know your customer (KYC) mechanism was one of the means of reducing incidences of fraud to the barest minimum.