Frauds and Forgeries

control
Fraud Risk Management and Regulatory Frame work
Meaning of Fraud risk terminologies
• Risk refers to the likelihood of loss to occur
• Fraud Risk
It is a possibility of any unexpected loss, be it financial, reputational, or
material, due to fraudulent activity by an internal or external
intentional act or omission designed to deceive others to achieve a
gain.
• Fraud Risk Impact
The degree of loss or damage that would result from an occurrence of
the fraud risk event
• Inherent Fraud Risk
Inherent risk is the initial risk that exists before any control is used to
address or reduce the impact of that risk.
• Fraud Risk Likelihood
A chance of fraud happening, whether defined, measured or
determined objectively or subjectively, qualitatively, or quantitatively,
and described using general terms or mathematically
Fraud risk management
• “Fraud risk management is a process that provides a framework to
identify, analyze, evaluate, and treat fraud risks.”
• Benefits of Managing Fraud Risks Managing fraud risks in PSE s may
include, among others, the following potential benefits:
i. Help in meeting regulatory requirements;
ii. ii. Supplement the internal controls environment in helping to
prevent, detect and deter fraud;
iii. iii. Manage the impact of fraud on available funding
iv. Protect the organization’s resources;
v. Help address areas of exposure in PSE where the internal controls
environment may have limitations such as collusion;
vi. Lead to improved efficiency and increased ability to meet
commitments and objectives and performance targets;
vii. Creation of intact and enhanced image;
viii. Boost employee morale through job satisfaction and greater
employment security; and
ix. Assure stakeholders’ confidence.
FRAUD RISK MANAGEMENT
PROCESS
• Establish a fraud risk management policy as part of organizational
governance
• Perform a comprehensive fraud risk assessment
• Select, develop and deploy preventive and detective fraud control
activities
• Establish a fraud reporting process and coordinated approach to
investigation and corrective action
• Monitor the fraud risk management process, report results and
improve the process
Establish a fraud risk management policy as part of
organizational governance

• Establishing a fraud risk management policy involves creating a

comprehensive framework that outlines the bank's approach to
preventing, detecting, and responding to fraud. This policy should
be integrated into the overall governance structure and should
involve input from senior management, the board of directors, and
other key stakeholders.
• A major bank creates a fraud risk management policy that includes
guidelines for employee conduct, internal controls, and regular
audits. This policy is communicated to all employees, emphasizing
the importance of ethical behavior and the consequences of
fraudulent activities. The policy also establishes a fraud committee
responsible for overseeing fraud risk management efforts and
ensuring that the policy is implemented effectively.
Perform a comprehensive fraud risk assessment

• A fraud risk assessment involves identifying and evaluating

potential fraud risks within the bank. This process helps to
pinpoint areas where the bank is most vulnerable to fraud,
assess the likelihood and impact of different types of fraud,
and develop strategies to mitigate these risks.
• A bank conducts a fraud risk assessment and identifies that
loan origination processes are particularly susceptible to fraud.
The assessment reveals that there are inadequate checks on
borrower information, leading to the approval of fraudulent
loans. As a result, the bank decides to implement more
stringent verification procedures and enhance employee
training on detecting fraudulent loan applications.
Select, develop and deploy preventive and detective
fraud control activities

• This step involves implementing specific controls to

prevent and detect fraud. Preventive controls are
designed to stop fraud from occurring, while detective
controls aim to identify fraud that has already occurred.
• To prevent fraud, a bank introduces a dual-authorization
system for large transactions, requiring two employees
to approve any significant fund transfers. To detect
fraud, the bank implements advanced monitoring
software that analyzes transaction patterns for unusual
activity, such as sudden large withdrawals or transfers
to high-risk countries.
Establish a fraud reporting process and coordinated
approach to investigation and corrective action

• Establishing a fraud reporting process ensures that employees

and customers can report suspected fraud easily and
confidentially. A coordinated approach to investigation and
corrective action ensures that all reports are thoroughly
investigated and appropriate measures are taken to address any
issues.
• A bank sets up a fraud hotline and an online portal where
employees and customers can report suspicious activities
anonymously. Once a report is received, a dedicated fraud
investigation team conducts a thorough investigation. If fraud is
confirmed, the bank takes corrective action, which may include
disciplinary measures, legal action, and steps to recover lost
funds.
Monitor the fraud risk management process, report
results and improve the process

• Continuous monitoring of the fraud risk management process

ensures that the bank remains vigilant and responsive to new
fraud risks. Regular reporting of results helps to keep
stakeholders informed, and ongoing improvements to the process
ensure that the bank’s fraud risk management practices remain
effective.
• The bank's fraud committee meets quarterly to review fraud risk
management reports, which include data on detected fraud
incidents, losses incurred, and the effectiveness of existing
controls. Based on these reports, the committee recommends
changes to enhance fraud prevention measures, such as adopting
new technologies or revising fraud detection algorithms.
Bank Fraud Detection and
Prevention
• Bank fraud detection and prevention refers to the
collective policies, protocols, procedures, and
technologies financial institutions leverage to protect
their assets, systems, and customers against fraud.
• Detection includes any activities related to threat
monitoring, account monitoring, behavioral profiling,
and proactive risk identification. On the prevention side,
it includes any proactive measures related to threat
mitigation, such as developing internal controls,
conducting employee training, and implementing multi-
layered security.
Bank Fraud Detection and Prevention Technology

• Artificial intelligence:
Traditionally, banks and other financial institutions have
relied upon fraud monitoring solutions with rules-based
engines to detect fraudulent transactions generated by
risky IP addresses or multiple transactions taking place
within quick succession on a new account.
Cont..
The problem with this approach is that the rules on which
these engines operate are:
• Hard-coded, which means they’re unable to adapt to
evolving threats
• Binary, which means they’re unable to accommodate
the complexity of a wide variety of input variables and
are prone to false positives
• Unable to detect fraud in real-time, only flagging
fraudulent transactions after a financial loss occurs
Cont..
• Artificial intelligence (AI) is the key to overcoming these
challenges. AI-based fraud monitoring systems can ingest
and parse massive quantities of data a must, given the high
volume of transactions banks process each day and detect
fraudulent activity in real-time.
• Compared to rules-based engines, AI is highly adaptable,
enabling banks to easily pivot their fraud management
strategy based on new and emerging threats. And finally, AI
offers far greater accuracy than manual or rules-based fraud
detection, significantly reducing the rate of false positives
and providing banking customers with a better with overall
experience.
Cont..
• Machine learning:
Machine learning, is a subset of AI, is a powerful tool for
fraud prevention in the banking industry. Machine
learning enables fraud monitoring and detection systems
to “learn” from behavioral data, consortium data, and
other internal and external data sources and adapt
accordingly. The result is that banks are better able to
navigate the increasingly complex fraud landscape and
deliver more proactive protection to their customers and
their assets.
Cont..
• Although fraudsters can spoof a customer’s biometric
data, it is far more challenging to do so than it is to
steal their identity or credentials. To get the greatest
value out of biometric authentication, banks should pair
it with other technologies and controls to create a truly
multi-layered security strategy.
Cont..
• Two-factor and/or multi-factor authentication:
Two-factor (2FA) and multi-factor authentication (MFA)
are identification techniques that require banking
customers to provide two or more pieces of evidence to
verify their identity. 2FA and MFA are fairly standard
security measures that, like biometric authentication,
should be layered with the other technologies shown
here to create a comprehensive anti-fraud strategy.
Cont..
• Biometric authentication:
Biometric authentication is an identification technique
that relies on a customer’s unique physical
characteristics, such as their voice, facial features, or
fingerprints, to verify their identity. Each of these
characteristics is known as biometric data.
Biometric authentication has quickly become a popular
security measure with financial institutions because
customers’ biometric data cannot be stolen, forgotten, or
lost.
Cont..
• Advanced analytics:
Financial institutions process hundreds even thousands of
transactions each day, each of which generates data.
When analyzed using advanced data science techniques,
customer and transaction data can be incredibly potent,
enabling banks to gain a 360-degree view across the
business, enhance operational efficiency, and engage in
predictive fraud detection.
Strategies for Fighting Fraud in Banking

In addition to investing in the proper tools and

technology, financial institutions can take the following
measures to support bank fraud detection and
prevention:
• Host regular fraud awareness training.
Bank employees are a popular target for cybercriminals
particularly for phishing attacks and other forms of social
engineering so it’s essential to educate staff about
recognizing potential fraud and what to do if they suspect
that they’ve been compromised.
Cont..
• Be on the lookout for internal fraud.
With banking fraud, sometimes the call comes from inside the
house. Employees can expose their employers to substantial
risk, whether accidentally for example, unknowingly clicking a
phishing link or using an easy to guess password or intentionally.
Fraud awareness training can go a long way toward preventing
accidental fraud, but institutions need to be on high alert for
intentional fraud and keep a close watch on employees who:
• Have access to accounts without a legitimate business purpose
• Frequently access or monitor a customer’s account without a
legitimate business purpose
Cont..
• Process transactions outside of work hours
• Have unusual transfers on their general ledger
• Transfer funds from customer accounts to their personal
accounts
• Make excessive transfers or cash deposit
• Create a database of known threats.
It’s crucial that banks be aware of and on the lookout for
active and emerging threats. By collecting fraud data
from internal and external sources, banks can gain a
comprehensive view of the fraud landscape and make
more informed risk decisions. Financial institutions can
also use such a database to support fraud awareness
training and enable employees to recognize a broader
range of potential threats.
Cont..
• Educate banking customers.
Educating banking customers is a critical strategy for fraud
prevention and detection, as it empowers individuals with the
knowledge and tools to protect themselves against fraudulent
activities. By raising awareness about common fraud tactics such
as phishing and social engineering, promoting safe banking
practices like using strong passwords and enabling two-factor
authentication, and teaching customers to recognize and report
suspicious activity promptly, banks can significantly reduce the risk
of fraud. Educational initiatives can include workshops, informative
content, online tutorials, and regular alerts, all aimed at ensuring
customers understand how to safeguard their personal information
and navigate banking services securely.
Cont..
• Monitor transactions in real time.
Transaction monitoring is not only essential to comply with Know Your
Customer standards and Anti-Money Laundering laws, it’s also an
effective way to detect fraudulent activity.
For transaction monitoring to be successful, banks must first develop
behavioral profiles that establish a baseline for each customer’s normal
activity. Once an institution has created a behavioral profile for a
customer, it can monitor that customer’s transactions against the
baseline and proactively flag any anomalous (and potentially
fraudulent) activity.
• Develop multi-layered security systems.
A successful bank fraud prevention and detection strategy should be
multi-faceted and include administrative, physical, and technical
controls:
 At the administrative level, institutions should develop policies,
procedures, and guidelines that reduce their exposure to risk, such as
security education and awareness programs and password
management policies.
Cont..
 At the physical level, institutions should instate tangible security
measures, such as restricting access to specific computer programs
and data files and cross-checking asset or liability values against those
documented in control records.
 At the technical level, institutions should implement technology that
will reduce their risk exposure, such as firewalls, anti-virus and anti-
malware software, and AI-powered fraud monitoring systems.
Internal Audit and Internal
Control
• Internal audit
Meaning of internal audit refers to the process of examines and
evaluate the adequacy and effectiveness of internal control of an
organization.
Internal audits serve as a crucial preventive measure for
controlling bank fraud by providing an independent and
systematic evaluation of a bank's internal controls, risk
management processes, and governance practices.
Internal auditors review financial records, operations, and
compliance with laws and regulations to identify
vulnerabilities and ensure the integrity of the bank's
processes
Cont..
• By regularly conducting these audits, banks can detect potential
fraud risks early and implement corrective actions to mitigate
them. Internal audits also assess the effectiveness of the bank's
internal controls, ensuring that they are robust enough to
prevent unauthorized transactions, misappropriation of assets,
and other fraudulent activities.
• internal auditors provide recommendations for strengthening
internal controls and improving overall operational efficiency,
which further helps in minimizing the risk of fraud. This
continuous monitoring and evaluation create a strong deterrent
against fraud, as employees are aware that their actions are
subject to scrutiny. Overall, internal audits play a pivotal role in
maintaining the financial health and security of banks by
proactively identifying and addressing fraud risks.
Internal control:

Is the process of assuring an organization’s objective in operational

effectiveness and efficiency, reliable financial reporting and compliance
with laws regulation and policies.
By implementing robust internal controls, banks can
prevent unauthorized transactions, detect irregularities
early, and minimize opportunities for fraudulent
activities. These controls include segregation of duties,
requiring multiple approvals for significant transactions,
regular reconciliation of accounts, and stringent access
controls to sensitive information and systems. Effective
internal controls also involve ongoing monitoring and
periodic reviews to adapt to evolving risks and ensure
compliance with regulatory standards.
The main objectives of internal
control
• To ensure the orderly and efficient conduct of the business
• To safeguard the assets of the business
• To ensure the timely preparation of financial information
• To prevent and detect fraud
• To ensure completeness and accuracy of accounting records
The main objectives of internal
control
• To Ensure the Orderly and Efficient Conduct of the
Business:
Internal controls are designed to create a structured and
efficient operational environment within a bank. By
standardizing processes and procedures, internal controls
ensure that all activities are conducted in a consistent,
organized manner. This reduces chaos and inefficiencies,
making it easier to monitor operations, enforce policies,
and spot irregularities that could indicate fraudulent
activities.
The main objectives of internal
control
• To Safeguard the Assets of the Business:
Protecting a bank's assets is a fundamental objective of
internal controls. This includes physical assets like cash
and property, as well as intangible assets such as
customer information and intellectual property. Internal
controls help prevent unauthorized access, theft, and
misuse of assets by implementing measures such as
secure access protocols, regular audits, and physical
security controls. By safeguarding these assets, banks
can reduce the risk of financial loss and maintain
customer trust.
The main objectives of internal
control
• To Ensure the Timely Preparation of Financial
Information:
Accurate and timely financial reporting is crucial for
maintaining transparency and accountability in a bank's
operations. Internal controls ensure that financial data is
collected, processed, and reported promptly and
accurately. This enables timely decision-making and
helps in detecting discrepancies or anomalies that could
signal fraudulent activities. Regular financial reporting
also ensures compliance with regulatory requirements
and helps maintain the bank's reputation.
The main objectives of internal
control
• To Prevent and Detect Fraud:
A primary objective of internal controls is to prevent and
detect fraud by implementing checks and balances within the
bank's operations. This includes segregation of duties, which
ensures that no single individual has control over all aspects of
a financial transaction, thereby reducing the risk of fraudulent
activities. Internal controls also involve regular audits,
monitoring, and review processes to identify and address
potential fraud risks. By creating an environment where
fraudulent activities are difficult to execute and easy to detect,
banks can protect themselves from significant financial losses
and reputational damage
The main objectives of internal
control
• To Ensure Completeness and Accuracy of
Accounting Records: Internal controls are essential for
maintaining the integrity of a bank's accounting
records. They ensure that all financial transactions are
recorded accurately and completely, providing a true
and fair view of the bank's financial position. This
involves implementing procedures for proper
documentation, authorization, and review of
transactions. Accurate accounting records are vital for
detecting discrepancies, ensuring regulatory
compliance, and supporting effective decision-making
processes.
Importance of internal controls
• Improve accountability to customers
• Help organizations achieve performance and budget targets
• Prevent Loss of public trust
• Improve reliability of financial reporting by ensuring accurate records
• Improve compliance with laws and regulation
• Prevent loss of resources
Regulatory Frame work in
prevention and control of fraud and
forgery
• Regulation and supervision of the bank frauds
• Regulation of bank frauds in the Tanzanian banking sector refers to
the establishment of rules, guidelines, and standards by regulatory
authorities aimed at preventing, detecting, and addressing
fraudulent activities within banks. This regulatory framework is
designed to ensure the integrity and stability of the financial system
by setting forth legal and operational requirements that banks must
adhere to. These regulations cover various aspects, including anti-
money laundering (AML) measures, Know Your Customer (KYC)
protocols, internal controls, and reporting obligations for suspicious
activities. The Bank of Tanzania (BoT) plays a central role in crafting
and enforcing these regulations, often in collaboration with other
governmental and international bodies.
• Supervision of bank frauds involves the ongoing monitoring and
oversight of banks to ensure compliance with established
regulations and to detect and address potential fraud.
Supervisory activities are carried out by the Bank of Tanzania and
other relevant agencies, and include regular inspections, audits,
and evaluations of banks' operations, financial transactions, and
internal controls. The supervision process aims to identify
weaknesses in banks' systems that could be exploited for
fraudulent purposes, assess the effectiveness of their fraud
prevention measures, and take corrective actions where
necessary. Through supervision, authorities seek to maintain the
health and security of the banking sector by mitigating risks
associated with fraudulent activities.
Regulatory Authorities
• In Tanzania, several regulatory bodies are responsible for the
control and oversight of bank fraud. These organizations play
crucial roles in ensuring the integrity, security, and stability of
the banking sector. Here are five key regulatory bodies:
Bank of Tanzania (BoT):
The central bank of Tanzania, BoT is the primary regulator and
supervisor of banks and financial institutions in the country. It
sets regulatory standards, conducts inspections, and ensures
compliance with banking laws and regulations to prevent and
control fraud. The BoT also oversees the implementation of anti-
money laundering (AML) and counter-terrorism financing (CTF)
measures.
Cont..
Tanzania Revenue Authority (TRA):
Although primarily focused on tax administration, the
TRA also plays a role in detecting and preventing
financial fraud. It works to ensure that banks and other
financial institutions comply with tax laws and
regulations, and it shares information with other
regulatory bodies to help prevent fraudulent activities
that may have tax implications.
Cont..
Financial Intelligence Unit (FIU):
The FIU is responsible for receiving, analyzing, and
disseminating financial information concerning suspected
proceeds of crime and terrorist financing. It works closely
with banks to ensure compliance with AML and CTF
regulations and plays a key role in identifying and
preventing financial fraud.
Cont..
Tanzania Police Force, Economic and Financial
Crimes Division:
This division of the Tanzania Police Force specializes in
investigating economic and financial crimes, including
bank fraud. It collaborates with other regulatory bodies
and financial institutions to investigate and prosecute
fraud cases, providing a law enforcement perspective to
the regulatory framework.
Cont..
National Economic Empowerment Council (NEEC):
The NEEC focuses on promoting economic growth and
ensuring financial inclusivity. While its primary mandate
is not fraud control, it works to establish ethical practices
within the banking sector and collaborates with other
regulatory bodies to support efforts in preventing and
detecting fraud, particularly in promoting fair financial
practices and consumer protection.
Importance of regulatory frame in
bank fraud control
• The regulatory framework for controlling bank fraud plays a crucial
role in maintaining financial stability, protecting consumers, and
ensuring the integrity of the banking system. Here are six important
reasons why a robust regulatory framework is essential:
Risk Mitigation and Prevention:
• Regulations require banks to implement risk management practices
that help prevent fraud. These practices include know your customer
(KYC) procedures, transaction monitoring, and internal controls.
• By adhering to these regulations, banks can identify and mitigate risks
early, reducing the likelihood of fraudulent activities.
Cont..
Consumer Protection:
• Regulatory frameworks emphasize consumer protection. Banks must
provide transparent information to customers, safeguard their funds,
and address complaints promptly.
• Regulations ensure that banks treat customers fairly and prevent
fraudulent practices that harm consumers.
Cont..
• Encourages Compliance and Accountability:
Regulatory frameworks establish clear guidelines for
compliance, ensuring that financial institutions adhere to
laws and regulations. This promotes accountability and
reduces the incidence of financial misconduct. Regular
audits, inspections, and enforcement actions by
regulatory bodies ensure that institutions remain
compliant and accountable for their actions, fostering a
culture of integrity within the financial sector.
Cont..
Stability of Financial System:
• A well-defined regulatory framework contributes to the overall
stability of the financial system.
• By preventing fraud and maintaining confidence in banks, regulations
help prevent systemic crises that could impact the entire economy.
Cont..
Deterrence and Enforcement:
• Regulations serve as a deterrent to potential fraudsters. The threat of
penalties and legal consequences discourages fraudulent behavior.
• Regulatory bodies actively enforce compliance through inspections,
audits, and investigations.
Cont..
Global Harmonization:
• International regulatory standards promote harmonization across
borders. Consistent rules enhance cooperation among financial
institutions and regulatory bodies.
• Harmonization reduces regulatory arbitrage and ensures a level
playing field for banks operating globally.
Drawback of regulatory Frame work
• While regulatory frameworks are essential for controlling bank fraud,
they also come with certain drawbacks.
Complexity and Compliance Burden:
• Regulatory guidelines can be complex and extensive, requiring banks
to navigate a web of rules and requirements.
• Compliance involves regular audits, ongoing employee training, and
potential restructuring of business practices.
• The administrative burden of adhering to these guidelines can strain
resources and impact operational efficiency
Cont..
Cost of Compliance:
• Implementing and maintaining a robust regulatory framework is
costly.
• Banks must allocate funds for compliance officers, technology
upgrades, and monitoring systems.
• Non-compliance attracts penalties, damages the bank’s reputation,
and erodes customer trust
Cont..
Rapidly Evolving Landscape:
• The financial industry faces dynamic regulatory changes.
• New regulations emerge, existing ones evolve, and global standards
shift.
• Keeping up with these changes requires continuous adaptation and
investment
Cont..
Balancing Innovation and Compliance:
• Striking a balance between innovation and compliance is challenging.
• Banks must adopt new technologies while ensuring they meet
regulatory standards.
• Innovations such as digital banking, cryptocurrencies, and open
banking introduce novel risks that require careful management
Cont..
Inadequate Communication and Silos:
• Communication gaps between different levels of management within
a bank can hinder effective fraud control.
• Silos prevent seamless coordination between compliance, risk
management, and other functions.
• Isolated compliance activities lack a clear link to broader risk
management processes
THE ROLES OF GOVERNMENT IN PREVENTING
FRAUDSAND FORGERIES IN THE TANZANIAN
BANKING SECTOR
• The roles of government in preventing fraud and forgeries in the Tanzania banking
sector cannot be overemphasized. This can be achieved through the regulatory and
supervision authorities such as the Bank of Tanzania (BOT) and deposit Insurance
Corporation (DIC). The surveillance role of BOT and DIC are critical to ensure the
soundness and efficiency of banking sector in order to build up confidence and
stability of the system.The BOT act, as amended, considerably strengthened the
powers of the bank as an agency of government with the responsibility for
maintaining monetary stability and a sound financial systems in the country while
the Bank and Financial Institutions Act (BAFIA), as amended, enhanced the bank‟s
power over the financial system with the aim of ensuring high standards of financial
practice and sustained financial stability. Therefore, in order to avoid the pitfalls of
the past, the Bank of Tanzania had taken a combination of measures to prevent
frauds and forgeries in the banking system. Some of these measures are as follows:
THE ROLES OF GOVERNMENT IN PREVENTING
FRAUDSAND FORGERIES IN THE TANZANIAN
BANKING SECTOR
• Enabling legal framework;
the successive reviews of banking Act of 2006 proposed amendments
were intended to ensure a robust and more efficient and effective
regulatory regime. For example, the power granted to Governor to
quickly take actions intended to address distress symptoms without
seeking prior approval of the political authorities made a big difference.
THE ROLES OF GOVERNMENT IN PREVENTING
FRAUDSAND FORGERIES IN THE TANZANIAN
BANKING SECTOR
• Review of requirements for appointment to the boards and top
management of banks:
To promote the quality of management of banks, the Central Bank of
Tanzania reviews upward the requirements for appointment into the
boards and top managements of banks. Apart from the educational
qualification and years of experience requirements as stipulated for
prospective bank directors and top management, they are also
expected to pass the “fit and proper” persons test.
THE ROLES OF GOVERNMENT IN PREVENTING
FRAUDSAND FORGERIES IN THE TANZANIAN
BANKING SECTOR
• Additional responsibilities for bank directors: -
The BOT ensure that bank directors abide by the code of conduct which
is subscribed to by all director.
THE ROLES OF GOVERNMENT IN PREVENTING
FRAUDSAND FORGERIES IN THE TANZANIAN
BANKING SECTOR
• Establishment of a credit bureau: -
To minimize the incidence of non-performing credits, the Central Bank
of Tanzania established the credit bureau to provide information on the
system‟s exposure to individuals borrowers in various banks. With this,
the activities of multiple borrowers within the system are brought to
focus, as the system provide a comprehensive report on each
individual‟s borrowing in all the banks.
THE ROLES OF GOVERNMENT IN PREVENTING
FRAUDSAND FORGERIES IN THE TANZANIAN
BANKING SECTOR
• Establishment of Bank of Tanzania/DIC committee on supervision: -
The establishment of the Bank of Tanzania (BoT)/Deposit Insurance
Corporation (DIC) Committee on Supervision illustrates the government's
proactive role in controlling bank fraud by enhancing regulatory oversight,
coordination, and enforcement within the banking sector. This committee
formulates and implements stringent policies and guidelines to ensure
robust internal controls and risk management practices among banks. It
facilitates collaboration among regulatory bodies, financial institutions, and
law enforcement agencies to effectively share information and respond to
fraud risks. Through regular inspections, audits, and capacity-building
initiatives, the committee ensures compliance with regulations and
enhances the skills of bank personnel. Additionally, it manages crises and
resolves fraud incidents to protect depositors and maintain confidence in
the financial system, thereby reinforcing the stability and integrity of
Tanzania's banking sector.
• Group quiz
• Discuss the challenges of strict regulation on banking supervision to
control bank frauds. Give five point
 Quiz
• Discuss international regulatory bodies responsible for fraud
prevention and control and its implication to Tanzanian banking sector