Bank of Guyana Governor Lawrence Williams said yesterday that the Central Bank is awaiting a definitive report from Republic Bank (Guyana) on the recent fraud that was discovered within its system. The report is expected to set out in general terms what contributed to the fraud and the actions the bank has taken.
Williams, who was responding to questions posed by reporters on the fraud, said the Central Bank has concerns about detection of fraud in the system. He noted that the bank’s regulatory procedure includes an inspection and supervision of the financial sector that would assess credit profiles and appraisals at the banks, adding that if weaknesses are detected “the institutions would usually give a timeframe within which to correct the deficiencies”.
The Central Bank Governor observed that Republic Bank has it own system and stated that as a result, the bank has to ensure that the necessary safeguards are there while paying attention to the individuals that they put in positions of trust.
Further, he noted that there are certain rules governing the internal systems of banks, which when not adhered to would result in fraud.
Recently, a multi-million-dollar fraud was discovered at Republic Bank and three senior staffers were reportedly severed. According to reports, a woman from Trinidad and Tobago is also said to be involved in the fraud but it is not clear in what capacity.
Senior officials at the bank have been tightlipped on the fraud, refusing to divulge any information, but reports state that the fraud was discovered sometime last November and occurred over a period starting at the bank’s former Camp and Regent streets location and continued at the new Robb and Camp streets location.