Fraud in the Banking Industry: Imperatives for an Anti-fraud Court in Nigeria
Keywords:
Bank, fraud, eradication, court and industryAbstract
Fraud in the banking sector has become a significant concern globally, leading to substantial financial losses for both individuals and institutions. This article explores the need for a special court dedicated to addressing fraud cases in the banking sector. The objective is to examine the limitations of the existing legal framework and propose the establishment of a specialized court to expedite the resolution of banking fraud cases. The article begins by providing an overview of the current state of fraud in the banking sector, highlighting the various types of fraudulent activities and their impact on the economy. It then discusses the challenges faced by traditional courts in handling banking fraud cases, including the complexity of financial transactions, the need for specialized knowledge, and the lengthy legal procedures. Next, the article examines the benefits of establishing a special court for banking fraud
cases. It argues that such a court would have several advantages, including the ability to handle complex financial cases efficiently, the provision of specialized judges with expertise in banking and finance, and the potential for faster resolution of cases, leading to increased deterrence and prevention of fraud. Furthermore, the article explores the potential structure and jurisdiction of a specialized court, drawing on examples from other countries that have implemented similar systems. It discusses the need for collaboration between the banking sector, law enforcement agencies, and the judiciary to ensure the effective functioning of the court. Finally, the article addresses potential challenges and criticisms of establishing a special court, such as concerns about the separation of powers and the potential for bias. It suggests measures to mitigate these concerns, including the appointment of independent judges and the establishment of transparent procedures. In conclusion, this article argues that the establishment of a special court dedicated to banking fraud cases is necessary to effectively combat fraud in the banking sector. It emphasizes the need for collaboration between stakeholders and proposes recommendations for the structure and functioning of such a court. By expediting the resolution of
banking fraud cases, a special court can contribute to the eradication of fraud and enhance the integrity of the banking sector.
References
Central Bank of Nigeria. Annual Report and Statement of Accounts: 2018. Abuja, Nigeria: Central Bank of Nigeria; 2019.
Iroka G. (2003). Pamphlet on Banks Law [Unpublished].
United Nations. (2005). UN Office reports on drugs and crime. [Online] Available at https://www.unodc.org/unodc/en/data-and-analysis/WDR-2005.html [Accessed on October 2023]
Danbazua AB. Criminology and criminal justice. Ibadan, Nigeria: Spectrum; 2006.
Gup BE. Targeting fraud: uncovering fraud in Financial Institutions. Chicago, IL, USA: Probus Publishing; 1995.
Economic and Financial Crimes Commission. Economic and Financial Crimes Commission Annual Report: 2018. Abuja, Nigeria: Economic and Financial Crimes Commission; 2019.
Aluko OO. Bank fraud and its implications on the Nigerian economy. Int J Econ Com Manag. 2016; 4 (9): 1–10.
Garner BA. Black law dictionary. 8th ed; Eagan, Minnesota, USA: Thomson West; 1990. p. 154.
Nwankwo OC. Bank fraud in Nigeria: a review of the causes and control measures. Int J Bus Manag. 2012; 7 (22): 33–40.
Adebisi JF, Akinpelu OR. Bank fraud and its implications on the Nigerian economy. Int J Humanit Soc Sci. 2014; 4 (4): 254–262.
Afolabi L. Law and practice of banking, 3rd ed. Ibadan, Nigeria: Ibadan Heinemann; 2005.
Akinyomi OJ, Oyedele AO. Assessing the impact of bank fraud on the Nigerian economy. J Acc Financ Manag. 2015; 1 (1): 39–47.
Okolie FO, Onyekachi RA. Bank fraud and its impact on the Nigerian economy. Int J Bus Soc Sci. 2013; 4 (4): 244–251.
Adeniji AA. Fraudulent practices in Nigerian banks: causes and consequences. J Fin Acc. 2017; 5 (3): 101–109.
Goredema C. Measuring money laundering in Southern Africa. African Security Review. 2005; 14 (4): 27–37.
Silberman CE. Criminal violence, criminal justice. New York, NY: New York Vintage Books; 1980, pp. 346–347.
Fagbemi TO, Ismail M. The effect of bank fraud on Nigerian economy. J Acc Taxation. 2016; 8 (7): 66–73.
Magaji BM. (2010). Principles of Nigeria Law: an outline Kaduna Efsoon Print.
Magaji BM. (2007). Constitutional guarantees to fair trial: scope and limitations of the Armed Force Act No. 105 in Military Court.
Ogunleye GA, Adeniji AA. Bank fraud: A threat to financial stability in Nigeria. Acc Fin. 2018; 18 (1): 96–105.
Halsbury Laws of England, 3rd ed. London, England: LexisNexis Butterworths; 1964. p. 229, para. 427.
Holden JM. The law and practice of banking vol. London, England: Pitman Publishing Limited; 1983.
