Fiji’s Banking Sector Rocked by Fraudulent Transactions

The Reserve Bank of Fiji (RBF) has raised concerns over a disturbing trend of fraudulent transactions by commercial bank staff members, calling for greater accountability within the sector.

According to the RBF’s 2021 Quarter 1 Complaints Management Bulletin, a staggering 50% of complaints escalated to the central bank during the quarter were related to bank malpractice. These complaints included:

Fraudulent withdrawals
Dormant accounts
Exorbitant fees charged on international fund transfers
Issues with loan recovery processes

Investigations Reveal Lack of Customer Service as Root Cause

Investigations by the RBF revealed that many of these complaints could have been resolved at the institution level if only frontline staff had provided satisfactory customer service. One particularly egregious case involved an elderly customer who discovered a substantial reduction in her account balance despite having made no withdrawals herself.

Police Action Taken Against Former Bank Employees

Following a complaint to the relevant bank, an internal investigation was launched and two former bank employees were subsequently charged by police, with the matter now before the courts.

ATM Withdrawal Case Highlights Need for Transparency and Accountability

Another case involving an ATM withdrawal has also been reported to the authorities. The RBF is keen to emphasize that these cases are not isolated incidents, highlighting the need for greater transparency and accountability within Fiji’s banking sector.

Dormant Accounts a Growing Concern

The central bank noted a significant increase in complaints related to dormant accounts, primarily affecting customers such as sugarcane farmers or those who use their accounts solely for savings purposes. In response, one concerned bank has agreed to launch an awareness campaign educating customers on how to keep their accounts from becoming dormant.

Conclusion

The RBF’s findings highlight the need for greater accountability and transparency within Fiji’s banking sector. Customers deserve better service and protection from fraudulent activities. As the sector moves forward, it is crucial that banks prioritize customer satisfaction and take proactive measures to prevent such cases from occurring in the future.