Fighting crime prevention in the banking sector

Chapter 3

Some solutions and recommendations for crime prevention in the banking sector

3.1- Principles in the fight against crime

Crimes are acts that have negative impacts on society, the fight against criminal manifestations and criminal acts is extremely important and necessary, in order to minimize the occurrence and development of crimes. However, in organizing the fight against crime, it is necessary to comply with principles to ensure that the fight is in line with the goals and political tasks and ensures legal and professional requirements; compliance with principles also aims to ensure that the system is most effective in achieving the goals.

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Therefore, the fight against crime must comply with the principles of criminal policy, of legal practice in general and the principles of other branches of law.

The fight against crime in general and banking crime in particular must adhere to the following principles:

Obey the class interests of the Party and State. Strictly comply with socialist law. Strengthen socialist democracy.

All citizens are equal before the law. Criminal liability is based on fault.

All criminal acts must be detected and handled resolutely, strictly and in accordance with the law.

3.2- Solutions to prevent banking crimes.

From the perspective that preventing banking crimes is not only the responsibility of banks but also of all State agencies, social organizations and all citizens, requiring coordination from many sectors,

Organizations as well as cooperation between banks and inspection agencies, investigation agencies, crime prevention work needs direction and direction from the Government and international cooperation with the main viewpoint that prevention is better than cure and nowhere is crime prevention more effective than where it arises.

3.2.1- Preventing and combating crimes within the bank: 3.2.1.1- Personnel work:

From the causes and conditions of economic crimes in general and in the banking sector in particular, the important cause lies in the organization and personnel work. Because all violations and crimes are formed in banking activities due to the participation and support of officers from cashiers, accountants, payment officers, credit officers, import-export payment officers, computer operators, so each bank needs to choose for itself a team of honest and upright officers.

a- Staff selection:

Selecting competent, qualified and qualified staff, organizing a public and transparent recruitment system.

The selection notice must be widely published in the mass media with specific regulations so that the bank has the opportunity to choose.

talented staff. Avoid recruitment in the form of sending children and acquaintances, so when there is wrongdoing, it is often not strictly handled due to fear of conflict. When recruiting, it is necessary to promote honesty, diligence and compliance with professional procedures, which are extremely necessary requirements for every bank employee.

Only select qualified people such as having the right degree for the required profession to avoid wasting human resources.

In fact, violations in recruiting new employees are not as dangerous and urgent as the shortcomings and defects in the promotion, training and education of cadres. It is because of these shortcomings that every year the number of people who have degraded their qualities or even become economic criminals accounts for a large proportion. Many cases have proven that not all violations of banking and financial management regulations originate from economic difficulties, because the income from salaries of these subjects is relatively high and stable compared to the general level, but the money obtained from violations is the expected source of income and becomes the main source of income for these subjects.

To overcome the above situation, in promoting and appointing officials, it is necessary to promote and appoint officials according to the standards and titles prescribed by the State.

Determine and oppose localism, personalism, favoritism, or prejudice in promotion and appointment, and end the practice of appointing and promoting officials based solely on their personal history, disregarding professional capacity and economic expertise.

In addition, it is necessary to review and strictly inspect the granting of licenses to establish legal entities, especially production and business organizations, credit and service organizations, etc. to ensure the legality of these organizations, as well as to ensure that the heads of these legal entities must meet the conditions as prescribed by law.

In personnel work, we must be close and strict, approach borrowers and have a plan to directly check and double-check customers, and exchange staff in many locations.

b- Staff training

In the process of working to keep up with the development of the market economy, training and retraining of staff is required to continue to be improved.

From the perspective of the history of formation and development of the banking system, this is a fairly young field, and the initial staff recruited were all

transferred from other industries, many of whom had never been exposed to

contact with banking operations, so the process of conducting and handling operations is still quite unfamiliar, it is inevitable that there will be mistakes due to lack of qualifications, so training plays a very important role. In fact, there are officers who collect gold deposits from customers but they themselves cannot distinguish between real and fake gold, leading to customers being scammed into sending fake gold and receiving real gold.

It is necessary to urgently train and retrain old economic managers to help them change themselves, and at the same time supplement their knowledge and management experience in accordance with the characteristics of the economy, operating according to the market mechanism with state regulation. Macro-level managers must be systematically trained in economic management, have the ability to synthesize, have knowledge and practical experience in management science. Micro-level managers and professional staff need to be further trained in marketing ability, master the law, policies, and have a deep understanding of professional expertise in the economic field, especially banking.

Training form can invite teachers to instruct at the bank, creating

conditions for ministries to study at specialized training institutions with tuition support, send cadres to attend training programs organized by the sector and human resource training projects.

In addition to professional training, attention should be paid to training in general knowledge of law, mainly in areas of law directly related to business activities.

financial incentives for officials to form reflexes to obey the law and choose behaviors that do not violate the law; through purposeful legal education, self-control has been formed in those who tend to violate the law.

To comply with and implement the rule of law, it is extremely necessary to disseminate and educate the law to officials and people, especially economic law. Along with the dissemination and education of the law, it is necessary to step up the inspection of compliance and strictly handle those who violate the law and commit economic crimes.

Building a truly democratic rule of law state, in which every state organization, every economic unit, every person knows how to voluntarily comply with the law, knows how to set the slogan: Living and working according to the Constitution and the law in their consciousness and actions, creating a spirit of uncompromising struggle against violations of the law - That is a solid foundation to overcome corruption in general and economic crimes in particular.

c- Political and ideological education work

Humans are the sum of social relationships, regulated by a considerable number of legal norms. In the organizational system, these relationships are placed under the trade union, youth union and party organizations.

to direct relationships in a certain direction.

Political and ideological education work is regularly disseminated and reminded by Party committees and youth organizations so that cadres and workers can grasp it together.

receive major policies of the Party and State from which do not go against legitimate interests, always obey class interests.

Ideological education to help bank staff form awareness

professional ethics, creating a reflex away from criminal behavior.

Take the recent credit card scandals as an example, at this point

What all banks are concerned about is that crime in card services is not only the situation where criminals install devices to steal customer data.

are increasing day by day. I don't want to say it, but the hidden worry in the minds of bank managers at this time is the risk coming from within their own system. The above mentioned type of account theft is really worrying, but it is something external and is warned about regularly. Usually, people are wary of criminals but no one suspects the people right around them. Risk from

The professional ethics of some new bank employees are extremely dangerous. With the continuous intensity of a crime in this form, they can withdraw about 30 million VND a day (withdrawn using many different cards) and

On average, they can earn billions of Vietnamese Dong a year. Therefore, ideological work is always highly valued.

3.2.1.2- Salary mechanism

The underlying and main cause of crimes in banks comes from material difficulties, due to having to spend frugally and economically for many years, so when having the opportunity to come into contact with a large amount of currency, they cannot escape the temptation, they find all measures, tricks, whether sophisticated or reckless, in the form of either themselves or in collusion with colleagues and customers to appropriate bank money for personal use.

Realizing this, commercial banks from state-owned to joint-stock have all set the V2 business salary, based on the actual revenue of each branch supplemented with the basic salary to pay employees.

In addition, many banks have introduced a motivational salary mechanism to promote individuals and groups with good business performance, creativity and initiatives, both to increase bank revenue and to increase competitiveness among bank staff, making banking activities more vibrant.

more active, enthusiastic in working and seeking capital for the bank. The actual legal income of individuals active in business has increased significantly, making workers not want to be corrupt, not want to intentionally or unintentionally do wrong, not intentionally take advantage of loopholes to withdraw money from banks and customers.

Emulation and reward work must be given due attention by banks. It is an opportunity to honor typical and advanced individuals in banking activities, a source of encouragement for employees, creating joy, passion and wholehearted effort in work.

3.2.1.3- Implementation of business processes.

In all cases, bank officers must strictly comply with credit procedures and accounting principles. Strengthen the inspection of loan guarantees. It is strictly forbidden for a credit officer to collect debt and interest alone.

The proposed business process must be accurate, strict, clear, easy to understand and easy to follow.

Apply and comply with the law, documents of the State Bank and the Head Office but still ensure the flexibility of economic transactions.

a, Loan process:

In business processes, credit and accounting business processes have a great influence on the occurrence of violations. The process is strict with clear steps, but the implementers intentionally skip steps, create gaps to gain material benefits. Through analysis, along with tables, it can be seen that violations causing serious damage to banks are all carried out through credit operations. Therefore, it is necessary to seriously, scientifically and synchronously implement the lending process:

The lending process is important to the credit activities of the bank. A strict and effective lending process will be the most effective measure to limit risks in the credit granting process, minimizing violations.

The loan process is a process from when the customer applies for a loan until the bank recovers all the debt, including 5 stages:

Apply for a loan

Credit Analysis Stage Credit Decision Stage

Customer loan usage and risk monitoring phase Contract review and liquidation phase

The above stages are closely related to each other and require

be carried out fully and closely at each stage, not to be overlooked.

at any stage, avoid the situation where credit officers accidentally or intentionally skip stages.

segment to profit.

a- Appraisal work:

Comply with the appraisal documents of each bank, at each time of business occurrence.

Financial reports must be certified by an auditing agency and must be reports for the last 2 years of operation.

For mortgage loans using assets, it is necessary to register the security transaction.

guarantee. This is an important legal basis to determine the validity of mortgage and guarantee contracts. On the other hand, if the secured transaction is registered before lending, it will help the bank limit risks, as well as prevent the risk of dishonesty from the customer.

Prevent customers from using fake land use right certificates to mortgage loans from banks as happened at Commercial Bank Branch 5 - Ho Chi Minh City. Therefore, in all cases of accepting loans on land use right mortgage, when registering secured transactions, the registration officer is responsible for checking the registration documents, recording the registration content in the Land Registry and the Land Change Monitoring Book.

Through secured transactions, the order of payment priority when assets must be handled can be determined; at the same time, it can detect and prevent fraudulent customers from using collateral assets that have been mortgaged or guaranteed at other credit institutions to mortgage or guarantee loans at other banks.

For loans secured by assets, many violations and frauds have arisen because the bank has full authority to decide: from certification, appraisal to receiving red books into the warehouse, causing bank staff to abuse their power and take advantage of loopholes in internal management to deliberately rotate red books and set prices higher than their actual value.

Fighting crime prevention in the banking sector - 13

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