With a view to further strengthen fraud risk management
and monitoring function of the banks/ MFBs/ DFIs, the
instructions on frauds & forgeries have been revised
and enclosed at Annexure-1. Moreover, the existing data
reporting formats on frauds/ forgeries/ dacoities have
been streamlined for automation and have been revised
to bring these in line with the Basel II Business Lines
and Event Types requirements.
3) All banks/ MFBs/ DFIs are advised to submit quarterly
statement of frauds on the revised formats attached
as Annexure-A (Forms I-IV), which will replace the existing
quarterly reporting formats, within 15 days of the close
of each calendar quarter along with a soft copy in CSV
(comma delimited) file format to the Banking Policy
& Regulation Department. The quarterly report will
include all actual as well as attempted fraud cases
even if no monetary loss has been sustained or the amount
involved has been fully recovered. Moreover, instances
of dacoities/ robberies/ theft/ burglaries will be reported
separately on Form-V on quarterly basis as per the above
Banks/ MFBs/ DFIs will report frauds/ forgeries/ dacoities
cases as per the revised codes list given at Exhibit-1.
A glossary of the terms used in the revised reporting
requirements is also attached at Exhibit -2 along with
instructions for filling these forms.
Banks/ MFBs/ DFIs are also advised to report to the
BPRD all material incidents of frauds/ forgeries/ dacoities
etc. of Rs. 5 million and above on urgent basis as under:-
Preliminary report within 2 working days of the detection
of such incident by mentioning the date of the
incident and other information about the case as available
at the time of such reporting; and
Detailed report within 15 working days of the detection
of such incident on the format attached as Annexure-B
Banks having overseas branches/ offices will also report
all cases of frauds perpetrated at such branches/ offices
to the BPRD in the quarterly reporting. Banks/ MFBs/
DFIs will also report frauds perpetrated in their subsidiaries/
associates/ joint ventures, however, such frauds should
be reported separately on quarterly basis.
Banks/ MFBs/ DFIs are advised to strengthen their internal
controls as well as reporting mechanism so that frauds
are detected and reported within the stipulated time
without any delay. In this regard, banks/ MFBs/ DFIs
must fix staff accountability in respect of delay in
reporting of fraud cases to the State Bank of Pakistan.
Banks/ MFBs/ DFIs should specifically nominate and communicate
the name(s) of functional official(s) who will be responsible
for submitting all the returns mentioned in this Circular.
Any changes in the name(s) of concerned official(s)
must be communicated to the Banking Policy & Regulation
Department in writing immediately.
Banks/ MFBs/ DFIs are required to strictly comply with
these instructions and any failure on their part will
attract punitive action under the Banking Companies
Ordinance, 1962. The first quarterly statement for the
quarter ending June 30, 2014, on the revised format
shall be submitted by July 15, 2014.
This Circular supersedes all previous instructions on
on Fraud Risk Management)
Annexure-A (Form-I), (Form-II), (Form-III), (Form-IV), (Form-V)
Exhibit 1 & 2
Instructions for data