Please refer to BSD Circular No. 1 of January 19, 2005 regarding Reporting Requirements on frauds/ forgeries/ dacoities in banks/ DFIs.
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.
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 timeline.
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:-
a) 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
b) Detailed report within 15 working days of the detection of such incident on the format attached as Annexure-B (Form-VI).
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 the subject.
