At the 2024 Capacity Building Workshop hosted by the Nigeria Deposit Insurance Corporation (NDIC) in Lagos, retired Assistant Inspector-General of Police (AJG) Tunde Ogunsakin delivered a powerful address on cutting-edge investigation techniques for the successful prosecution of insider abuses and financial malpractices in Nigeria’s banks and financial institutions. The workshop, which focused on inter-agency collaboration in the fight against financial crimes, brought together key stakeholders from law enforcement agencies, the banking sector, and regulatory bodies.
Ogunsakin, recognized for his vast experience in financial crime investigations, emphasized the need for a coordinated, technology-driven approach to tackling financial malpractices within banks. He outlined a multi-tiered strategy to identify, investigate, and prosecute insider threats, drawing on his years of service and insight into the evolving landscape of financial fraud.
Digital Forensics and Behavioral Analytics: The Cornerstones of Investigation
Ogunsakin began his presentation by stressing the importance of digital forensic analysis in identifying fraudulent financial transactions orchestrated by insiders. He explained how digital footprints left behind by culprits can be used as powerful evidence when traced correctly using forensic tools. The retired AIG urged financial institutions to strengthen their internal control systems and share data promptly with law enforcement to ensure investigations move swiftly and accurately.
He further highlighted the role of behavioral analytics in detecting insider threats early. According to Ogunsakin, many fraudulent activities within banks are orchestrated by employees who understand the intricacies of banking operations. “By tracking unusual behaviors, such as unexplained access to restricted data or irregular transaction patterns, banks can flag potential insider abuses before they escalate,” he said.
The Role of AI and Data Mining
A critical component of Ogunsakin’s strategy involves the integration of artificial intelligence (AI) and data mining techniques in detecting complex financial malpractices. He outlined how AI-powered tools can sift through vast amounts of transaction data to uncover hidden patterns of fraud, making it easier to trace the origin of insider schemes.
“AI is revolutionizing the way we approach financial crime investigations,” Ogunsakin explained. “By automating the analysis of high-volume transactions, we can identify red flags that might otherwise go unnoticed. These technologies not only accelerate the pace of investigations but also improve the accuracy of evidence gathering.”
Evidence Gathering for Prosecution
Ogunsakin shared his blueprint for gathering airtight evidence for the successful prosecution of financial malpractices. He emphasized that real-time monitoring and access to financial records are crucial in building a strong case. Banks must be willing to cooperate fully with law enforcement agencies by providing unhindered access to transactional data and internal audit reports.
“Successful prosecutions often depend on our ability to act quickly and decisively,” Ogunsakin noted. “By gathering evidence in real time, we prevent perpetrators from covering their tracks, increasing the likelihood of a conviction.”
He also underscored the value of forensic accounting in tracing funds that have been laundered or diverted through complex networks. He recommended that financial institutions conduct frequent audits to ensure transparency and accountability, urging them to deploy risk-based auditing that targets high-risk areas prone to insider abuse.
Strengthening Inter-Agency Collaboration
A major focus of the workshop was on inter-agency collaboration—a key component in tackling financial malpractices in Nigeria’s banking sector. Ogunsakin called for improved synergy between agencies such as the NDIC, the Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU). He explained that by sharing intelligence and leveraging each agency’s unique capabilities, law enforcement can better detect and dismantle financial crime syndicates.
“Financial crime is a multifaceted challenge that requires a collective response. Each agency brings its expertise to the table, whether it’s intelligence gathering, legal prosecution, or financial oversight. By working together, we can achieve results that would be impossible in isolation,” Ogunsakin said.
NDIC’s Commitment to Safeguarding the Financial Sector
Representing the NDIC, officials reiterated their commitment to safeguarding Nigeria’s financial sector by working closely with law enforcement agencies to combat financial malpractices. They pledged to increase transparency and accountability within the banking system and to continue offering training programs aimed at empowering law enforcement officials with the latest tools and knowledge in financial crime investigation.
The workshop concluded with an engaging discussion on the future of financial crime investigations in Nigeria. Participants highlighted the need for continuous capacity building, investment in technology, and stronger legal frameworks to ensure that those who perpetrate insider abuses are brought to justice.
Ogunsakin’s insightful address was met with widespread acclaim, with attendees leaving the workshop with a renewed sense of purpose and a clearer understanding of the next steps needed to protect Nigeria’s banking sector from insider abuses and financial malpractices. Through a combination of advanced investigation techniques, inter-agency collaboration, and a robust legal framework, Nigeria is on the path to stronger financial integrity and greater public trust in its financial institutions.
