The Bank of Ghana has advised banks to avoid underreporting or misreporting staff-related fraud to strengthen integrity in the financial sector.
Mr Ismail Adam, Head of Banking Supervision at the Bank of Ghana, gave the advice at the 13th Absa-UPSA Law School Quarterly Banking Roundtable in Accra.
He said failure by banks to accurately report fraud involving employees enabled perpetrators to secure employment in other financial institutions.
“Somebody is sacked from a financial institution because of fraud, but they will report it differently to the BoG and the same person is being engaged by another financial institution,” he said.
Mr Adam said creating a sound and secure financial system was a collective responsibility, requiring all stakeholders to play their roles.
He urged educational institutions to instil strong moral values in students as part of training for future professionals in the financial sector.
The roundtable was held on the theme: “Regulating Microfinance in the age of Fraud: Restoring Confidence and Growth.”
Mr Kenneth Kwamina Thompson, Chairman of the Board of Directors of the Agricultural Development Bank and former Chief Executive Officer of Dalex Finance, said the current ecosystem created conditions for fraud to thrive.
He called for reforms to improve financial systems infrastructure and expedite prosecution of financial sector fraud through special courts.
“We have created an ecosystem that promoted fraud. What is the point, if you have you have a system where the debtor says take me to court because he knows the case will be in court for 20 years,” he said.
Mr Akwasi Aboagye, Chief Executive Officer of Bayport Savings and Loans PLC, urged financial institutions to adopt preventive approaches by investing in systems that made fraud difficult.
Dr Seth Kwame Anani, Head of Policy and Regulation at the Other Financial Institutions Supervision Department of the Bank of Ghana, urged banks to comply with requirements to conduct background checks with the regulator when recruiting staff.
Source: GNA
