Business Desk :
A lack of corporate ethics is the prime cause for an increase in financial crimes in the banking industry, according to 73 percent of the respondents of a survey.
Lack of exemplary punishment was identified as the second major cause. Other reasons include lack of motivation, poor compensation and poor governance.
A research on “Corporate ethics and financial crime in banks: Bangladesh perspective” associated with the survey conducted by Bangladesh Institute of Bank Management (BIBM) was unveiled at a workshop yesterday.
Shah Md Ahsan Habib, professor and director of BIBM, presented the research at the BIBM auditorium.
About 70 percent of the respondents marked weak internal control systems and non-independent internal audits as the key causes, according to the survey.
It found that two-thirds of banks faced some form of financial crime in recent times. About 65 percent of banks stated to have faced one or more incidents of financial crime from 2014 to 2016.
However, 35 percent of the banks surprisingly stated to have not faced financial crimes during the period.
It is good that the banks did not experience any loss due to financial crime but it is not unlikely that the banks are shy to disclose information about such incidents, said the research.
The survey identified three segments-general banking, credit and IT-as most susceptible to financial crimes. The number of credit card related frauds increased remarkably during 2016-17, the survey observed.
A lack of corporate ethics is the prime cause for an increase in financial crimes in the banking industry, according to 73 percent of the respondents of a survey.
Lack of exemplary punishment was identified as the second major cause. Other reasons include lack of motivation, poor compensation and poor governance.
A research on “Corporate ethics and financial crime in banks: Bangladesh perspective” associated with the survey conducted by Bangladesh Institute of Bank Management (BIBM) was unveiled at a workshop yesterday.
Shah Md Ahsan Habib, professor and director of BIBM, presented the research at the BIBM auditorium.
About 70 percent of the respondents marked weak internal control systems and non-independent internal audits as the key causes, according to the survey.
It found that two-thirds of banks faced some form of financial crime in recent times. About 65 percent of banks stated to have faced one or more incidents of financial crime from 2014 to 2016.
However, 35 percent of the banks surprisingly stated to have not faced financial crimes during the period.
It is good that the banks did not experience any loss due to financial crime but it is not unlikely that the banks are shy to disclose information about such incidents, said the research.
The survey identified three segments-general banking, credit and IT-as most susceptible to financial crimes. The number of credit card related frauds increased remarkably during 2016-17, the survey observed.
