FRAUD DETECTION TECHNIQUES IN MICROFINANCE BANKS

Live-Online Training: N 210, 000.00
Classroom Training: N 280,000.00
3 - 4 participants: 5% discount
5 or more participants: 10% discount

This programme can run as an online or classroom training

(Available also for Customised Training by Duration, Venue & Fee)

 Programme Description:

The internal control environment is the overall attitude, awareness and actions of a corporate entity, its Board and Managers regarding its internal control system and its importance. A good control system can not only help to promote prevention and detection of fraud and errors, but also help achieve other control the objectives on profitability, adherence to Management policies, safeguard of assets, accuracy and completeness of accounting records, timely preparation of reliable financial information, discharge of statutory responsibilities, and protection of staff members against disinformation.

For Microfinance Managers to appreciate the framework for managing fraud risks, they are expected to understand why Microfinance Banks are vulnerable to fraud, the most common types of Microfinance frauds, danger signals and the elements and challenges of risk management. In other words, an effective Microfinance Manager, must have a working knowledge of fraud detections, fraud preventions, and response to fraud as required by them.

 Course Objectives

 By the end of this training, participants will:

•  Be able to understand the overview of Fraud and why Microfinance Banks are most vulnerable
•  Be able to understand and explain correlation between Fraud and Internal Control Systems in Microfinance Banks.  
• Be able to identify various Types of Frauds in Microfinance Banks.
• Be able to understand the Framework for Management of Frauds.
• ​Be able to understand the realities and areas of Risk Management in Microfinance Banks
• ​Be able to understand the key challenges for managing Fraud in MFBs
• Be able to understand overview of Internal Audit in Microfinance Bank
• ​Be able to understand the role of Internal Controls in Preventing Fraud in Microfinance Banks

Course Contents

DAY ONE

Introduction to Fraud and Microfinance

• Definition of Fraud
• Overview of Fraud in Microfinance
• Why is Microfinance most vulnerable to Fraud?  

Most Common Types of Frauds in Microfinance

• Fictitious Loans
• Kickbacks
• Cash Theft
• Collusion in Issuance of Loans
• Manipulation of Financial Data
• Rescheduling and Refinancing
• Inappropriate Write-offs

Framework for Managing Fraud Risk

• Fraud Detection
• Fraud Prevention
• Response to Fraud

DAY TWO

Areas Risk Management in Microfinance

• Risk Management within the Scope of;

            -Group (Peer) Lending

            -Character Assessment

            -Forced Savings / Co-signature Requirements

            -Small Loan Sizes

           -Varied Loan Terms

           -Limits on Loan Size Increases

           -Loan Approval Processes

           -Collection Centers

• Conducive Environment
• Employees and Characters Screening
• Transparency
• Simplicity
• Accountability
• Security

What are the Key Challenges in Managing Microfinance Fraud

• Maintaining cost-effective controls, high staff morale and culture of ethics, continuous awareness of new and complex Fraud types etc.

DAY THREE

Overview and Introduction to Internal Audits

• Differences Between Internal Control and Internal Audit
• Scope of Work and Authorization
• Audit of Financial Transactions
• Policies and Compliances
• Internal Control Officers Roles and Responsibilities
• Responsibilities of Management and Personnel

Internal Controls and Fraud Prevention

• Review and Sampling of New Loans Issued
• Visits to Clients
• Segregation of Duties
• Supervisory Committee / Internal Audit Department
• Policies
• Record Keeping
• Management Information System
• In-transit / Suspense Accounts
• Bank Reconcilements
• Internal Control Reports
• Auditing and Audit Trails
• Integrations with RM and CRM