Regulations needed to curb financial fraud

by Nilma Dole

We are going to tackle inattentive and incompetent bank employees to stop fraudulent customers from depositing black money, by warning the bank management, said SSP Maxi Procter, Director of the Fraud Investigations Bureau (FIB).

He said, "It has become so easy to open a bank account and deposit money nowadays. Bank employees themselves take the initiative to support illegal activities."

SSP Procter said this at a media briefing, referring to two cases of fraud pertaining to leading private banks in Sri Lanka. "We should bring about regulation and put a stop to these fraudulent activities at grass roots level. There are many shortcomings in the banking system," he said.

The Director of the FIB said that since criminals don't deposit large sums of money at once in one bank, they usually prefer to scatter their black money through a variety of banks. "The unfortunate aspect is that the majority of bank employees know that it is illegal, but they either turn a blind eye to the illegal deals happening under their noses or support the criminals.

"Our advice to the senior management of banks is that they should check the backgrounds of their bank employees especially those handling money at the counters. Moreover, they should be vigilant in detecting fraudulent money being transferred from other banks which seem suspicious," he said.

The FIB will always be available for the benefit of these banks so they can come in the strictest of confidentiality to talk about any financial fraud. "We hope people realise that by stopping such illegal activities, it makes it easier for the FIB and the police to nail criminals and seek justice," he said.