Uganda: Banks Need Harsher Punishments for Fraudsters

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The Uganda Bankers’ Affiliation (UBA) has proposed stiffer and painful penalties for people concerned in monetary fraud.

UBA, an umbrella physique of monetary establishments, say it has famous with concern an increase in instances of fraud in Uganda’s monetary companies sector.

The Monetary Intelligence Authority (FIA) report launched in June 2022 confirmed that fraud was rampant and more and more refined.

The report indicated that cyber frauds accounted for over 50% of the excessive worth fraud instances underneath investigation and annual fraud losses, greater than doubling over the interval 2020 to 2021.

On Monday, UBA chairperson Sarah Arapta revealed that not too long ago, they contracted a authorized agency to assessment the authorized framework for prevention, deterrence and remediation of fraud throughout the sector.

She famous that the framework, if authorized by the policymakers, would see convicts of monetary crime or these blacklisted face full enforcement of the regulation.

“We want to be able the place if one is convicted of significant monetary fraud and black or purple listed, no monetary establishment in Uganda can keep an account for you or transact with you along with the opposite cross-border and worldwide sanction imposed on such fraudsters,” Arapta mentioned.

The banker was talking on the launch of two newly-developed banking frameworks; The banking business pointers on mitigation of fraud (BIGF) and the revised business code of conduct and ethics (COC), at Sheraton Resort, Kampala.

The BIGF goals to sort out the urgent problem of fraud by creating complete pointers on incident reporting and data sharing in addition to formulating a strategic roadmap for the business to successfully fight fraudulent actions.

The BIGF framework shall additionally entail upkeep of two classes of itemizing of individuals or entities concerned in fraud particularly; the Gray listing for fraud suspects, blacklist for confirmed or convicted fraudsters.

Then again, the COC encompasses the essence of professionalism, ethics, and accountable conduct for all all workers of UBA member establishments and the secretariat.

It additionally entails punitive measures in opposition to banking workers who breach confidentiality obligations or collaborate with fraudsters to share data or compromise entry to techniques.

Talking on the launch, the Deputy Governor, Michael Atingi-Ego famous that the operationalisation of the frameworks comes at a important time when the banking business is going through the perversive risk of frauds fueled by technological evolution.