The Uganda Bankers’ Association (UBA) has urged financial institutions to remain vigilant in detecting fraud and promoting an anti-fraud environment while at the 2nd Financial Fraud Forum 2024 at Mestil Hotel.
Dr. Michael Atingi-Ego, Deputy Governor of the Bank of Uganda, stressed the importance of proactive measures beyond system fraud detection, including due diligence on customers and employees.
“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 from one institution to another,” he said.
He also emphasized the need for financial institutions to invest in awareness and education for the public on anti-fraud information. “Financial sectors players should invest in educating and empowering customers and the public with relevant anti-fraud information,” he added.
The forum, themed “Collaboration Against Fraud Targeting the Banking and Payment Services Ecosystem: Building Resilience for Today, Tomorrow, and Beyond,” highlighted the need for stakeholders to join forces against fraud, which poses a significant threat to the stability and integrity of Uganda’s banking and financial services sector.
Julius Kakeeto, UBA Chairman, noted that inadequate collaboration between financial institutions, stakeholders, and law enforcement agencies has contributed to the growth of fraud.
“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.
He also 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,” he said.
Justice Flavian Zeija, Principal Judge of Uganda, advised financial institutions to invest in modern technologies and train stakeholders in evidence gathering and management.
“In order to intensify 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,” he said.
He also emphasized the need for consistent awareness-raising among stakeholders and customers about fraud risks and prevention measures.
“Regular sensitization of stakeholders and customers on existing risks and how they can be prevented,” he added.
Nyombi Tembo, Executive Director of UCC, reiterated the importance of collaboration in building resilience against fraud. “Through collaboration, we can build resilience, because we are in a race against time, the fraudsters are not sleeping. We should be awake all the time,” he said.
The forum was organized by UBA in collaboration with UCC and VISA, bringing together stakeholders to address the evolving threat of fraud in the financial services sector.
