Financial Crime Prevention Techniques in Sierra Leone: A Study of Deposit Money Banks

Strengthening the Financial Sector through Forensic Accounting Techniques

A recent study by Alpha Bernard Bangura, a scholar from the Department of Accounting at Babcock University, Nigeria, highlights the importance of forensic accounting techniques and fraud prevention methods in Sierra Leonean deposit money banks. The study underscores the critical role these techniques play in maintaining corporate governance, internal control, and whistle blowing practices.

Vulnerability to Financial Crimes

Deposit money banks in Sierra Leone are vulnerable to financial crimes, including fraud, which can have devastating consequences on the economy. According to the research, fraudulent activities can be detected and prevented through the adoption of forensic accounting techniques such as:

• Data Analytics: The use of data analytics to identify patterns and anomalies in financial transactions.
• Digital Forensics: The analysis of digital evidence to detect and prevent fraudulent activities.

Positive Significant Effect on Corporate Governance

The study used a survey design to examine the relationship between forensic accounting techniques and fraud prevention in Sierra Leonean deposit money banks. The results showed that forensic accounting techniques have a positive significant effect on:

• Corporate Governance: Forensic accounting techniques improve the quality of financial reporting, enhance transparency and accountability, and promote ethical behavior among bank employees.
• Internal Control: Robust internal controls are essential for preventing fraud and maintaining good corporate governance practices.
• Whistle Blowing Practices: Effective whistle blowing policies are crucial for detecting and preventing fraudulent activities.

Recommendations

The study recommends that deposit money banks in Sierra Leone should:

• Adopt Robust Internal Controls: Establish effective internal controls to prevent fraud and maintain good corporate governance practices.
• Conduct Regular Audits: Regular audits can help detect and prevent fraudulent activities.
• Establish Effective Whistle Blowing Policies: Create a culture of transparency and accountability by establishing effective whistle blowing policies.

Conclusion

The research emphasizes the need for deposit money banks in Sierra Leone to prioritize forensic accounting techniques and fraud prevention methods to ensure the integrity of their financial systems and protect the interests of their customers. By adopting these techniques, deposit money banks can build trust with their customers, maintain a stable financial system, and contribute to economic growth and development in Sierra Leone.