Bankers in Uganda have been advised to implement stringent measures to tackle the increasing prevalence of fraud within the country’s financial sector. The Deputy Governor of the Bank of Uganda (BoU), Dr. Michael Atingi-Ego, emphasized the importance of enhancing public awareness, maintaining integrity, implementing robust internal controls, and fostering collaboration among financial institutions.
Dr. Atingi-Ego made these remarks during the launch of the Banking Industry Guidelines for Mitigation of Fraud and the Revised Code of Conduct in Kampala on February 19. He highlighted that fraud undermines the trust between customers and financial institutions, emphasizing the need for proactive measures to address this challenge.
In recent years, Uganda has witnessed a rise in various forms of financial fraud, including cybercrime, insider dealings, and theft at ATM machines. Dr. Atingi-Ego stressed the importance of educating citizens about emerging digital threats, enforcing oversight mechanisms, and enhancing collaboration among banks to combat evolving fraud schemes.
As the regulator, BoU has implemented measures to combat financial fraud, such as requiring banks to cover potential operational losses resulting from fraudulent activities. Dr. Atingi-Ego emphasized the significance of effectively implementing the newly launched guidelines and code of conduct across the industry.
He urged the banking sector to uphold high standards of transparency, integrity, and accountability, stating that collective responsibility and action are essential for fostering public confidence in the banking sector.
Ms. Sarah Arapta, Chairperson of the Uganda Bankers Association (UBA) and Managing Director of Citibank Uganda, acknowledged the evolving nature of fraud within the financial sector. She attributed this evolution to technological advancements and changes in market dynamics, including a surge in the youth population’s preference for digital solutions.
In light of the rising cyber-related frauds and other fraudulent activities in Uganda, bankers have been reminded of the global impact of financial criminality, with losses amounting to billions of dollars annually. Ms. Arapta emphasized the importance of adapting to market changes and implementing effective strategies to combat fraud in collaboration with regulatory authorities and industry stakeholders.
