Financial institutions in Uganda urged to collaborate in fight against fraud 2024

by admin July 25, 2024

written by admin July 25, 2024

Financial institutions have been encouraged to maintain vigilance in detecting fraud avenues in order to promote an anti-fraud environment in the financial service industry.

Speaking during the second financial fraud forum organized by the Uganda Banker’s Association(UBA) at Mestil hotel Kampala, Dr.Michael Atingi-Ego, the Deputy Governor of the Bank of Uganda, emphasized the importance of extending proactive measures beyond system fraud detection to include due diligence on customers and employees to strengthen the anti-fraud environment.

“Financial institutions 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 form one institution to another.”

Atingi-Ego also called for a collaboration and investment by financial institutions in creating awareness and equipping the public with relevant anti-fraud information.

“Financial sectors players should invest in educating and empowering customers and the public with relevant anti-fraud information.” This year’s financial fraud forum was organised 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, urged stakeholders to join forces and address the issue of fraud, emphasizing its 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.”

Kakeeto noted 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.”

However, he disclosed plans to enhance the technological, regulatory, and legal frameworks to empower stakeholders with the necessary tools to combat fraud effectively.

“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.

On his part, 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.”

Zeija urged financial institutions to consistently raise awareness among stakeholders and customers about the risks of fraud and effective prevention measures.

“Regular sensitization of stakeholders and customers on existing risks and how they can be prevented.”

Nyombi Tembo, the Executive Director of UCC, emphasized that collaboration is essential to build resilience against fraud today, tomorrow, and in the future.

“Through collaboration, we can build resilience, because we are in a race against time, the fraudsters are not sleeping sleeping. We should be awake all the time.”

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1 comment

tuheirwe miriam December 8, 2024 - 1:08 pm

This will help to promote an anti-fraud environment in the financial service industry.

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