Financial institutions have been urged to promote collaborations amongst themselves as a way of detecting and fighting fraud.
Speaking during the second financial fraud forum organised by the Uganda Banker’s Association(UBA) at Mestil Hotel Kampala, Dr.Michael Atingi-Ego, the Deputy Governor of the Bank of Uganda said it is high time financial institutions put in place measures beyond system fraud detection to help them deal with the vice.
“You must remain proactive in detecting fraud avenues and narrowing such opportunities. The proactiveness should not be limited to system fraud detection but should include constant customer and employee due diligence especially for employees moving from one institution to another,” he said.
“Financial sector players should invest in educating and empowering customers and the public with relevant anti-fraud information.”
This year’s financial fraud forum was held under the theme “Collaboration against fraud targeting the banking and payment services ecosystem: Building resilience for today, tomorrow, and beyond.”
The forum was organized by the Uganda Bankers’ Association in collaboration with UCC and VISA.
Julius Kakeeto, Chairman of UBA, said fraud is a threat to the stability and integrity of Uganda’s banking and financial service sector.
“Fraud poses a significant threat to the stability and integrity of Uganda’s banking and financial services sector. As fraudulent activities continue to evolve and become increasingly sophisticated, it is imperative for key stakeholders to regularly come together to confront this challenge.”
He said that the growth in bank and payment services related fraud has been driven by lack of collaboration between financial institutions, stakeholders and law enforcement agencies at all levels.
“Inadequate collaboration between financial institutions, stakeholders and law enforcement agencies domestically, regionally and internationally and yet borders have become virtual enabling criminals to perpetuate fraud and cash out from anywhere in the world.”
“This forum will focus on strengthening the technological, regulatory and legal frameworks to equip financial sector players and supporting law enforcement agencies in building resilience to deter perpetrators of fraud through very stiff and punitive consequence management,” Kakeeto said.
Justice Flavian Zeija, Principle Judge Uganda tipped financial institutions on investing in modern technologies and training stakeholders in evidence gathering, preservation and management.
“In order to intensity the fight against corruption, financial institutions should interest themselves in investing in good modern technologies. Training of stakeholders in proper evidence gathering, evidence preservation and management for adjudication of bank fraud cases in view of technological developments.”
“Regular sensitization of stakeholders and customers on existing risks and how they can be prevented.”
