Branchless banking: Banks enhance vigilance to combat scams of transactions

LAHORE: The banking sector has enhanced vigilance measures to combat banking scams through branchless banking transactions.

In a recent incident, both account holders and branchless agents of bank had allegedly embezzled millions of rupees through a transaction.

The scam involved 339 account holders, with 287 and 32 beneficiaries nominated in the First Information Report (FIR) filed by the bank with the Federal Investigation Agency (FIA).

However, the suspect accused of benefiting from a major banking scam was granted bail on the ground that further investigation is needed to prove the scam. The accused, who received a portion of the misappropriated funds, was not among the 287 account holders implicated in the unlawful transactions.

The sole allegation against the accused centred on bank statements showing receipt of funds from an account holder at the bank in question. However, the account holder who transferred the amount was not named in the First Information Report (FIR), raising questions about the accused’s involvement.

The accused was facing allegations of receiving millions of rupees of misappropriated funds. The investigation led to the registration of the FIR, implicating 287 account holders and 32 beneficiaries. The bank identified 339 account holders involved in the scam, prompting the FIA investigation.

The accused was not directly linked to the bank where the scam occurred, as the alleged amount was received in an account at another bank, registered under a business name. The sole evidence against the accused was bank statements, which may not be conclusive. Therefore, further investigation was deemed necessary to determine the accused’s level of involvement.

However, the accused’s bail grant may be revisited as the investigation continues and the outcome will depend on the findings of the further inquiry, which may shed more light on the accused’s role in the banking scam.

The banking sector experts believe that organised crimes are being committed against the banks resulting in a huge loss to banks in the hands of the beneficiaries of such illegal transactions.

Copyright Business Recorder, 2024