We admit that there are weaknesses linked to banks` internal processes. Based on our monitoring, the problems arise from weak supervision by the top managementsJakarta (ANTARA News) - Banks` internal weaknesses are the source of bank fraud, especially in terms of supervision by the upper level of management, a Bank Indonesia (BI) official said.
"We admit that there are weaknesses linked to banks` internal processes. Based on our monitoring, the problems arise from weak supervision by the top managements," said BI Deputy Governor Halim Alamsyah here on Monday.
Alamsyah was commenting on the bank fraud case at the Citibank branch office in Indonesia that involved the bank`s senior executive Melinda Dee who had allegedly transferred more than 2.0 million US dollars from customers` accounts to her own accounts.
Alamsyah added there had also been other causes for the fraud including collusion among employees and also excessive trust put by clients in the employees of the banks.
He even saw the need for internal regulations in the banks, as well as at the BI level, for putting in the check and re-check regulations regarding the relation between clients and the employees of the bank. Also, there should be limit on the number of clients that an employee may handle.
BI Public Relations Bureau head Difi A Johansyah added that bank frauds are avoidable if there is a good internal control within the bank. An example of the case was when Bank BNI succeeded in averting a recent fraud involving its own senior employees in Jakarta.
National Police headquarters` Director for Special Economic Crime Aried Sulistianto said earlier that there were eight banking crime cases in 2010 with 24 suspects, 11 were bank employees and 13 others from outside.(*)
Editor: Aditia Maruli Radja
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