(MENAFN- Muscat Daily) Muscat- The Central Bank of Oman (CBO) issued an advisory on fraud risk management to all licensed finance and leasing companies, also known as non-banking finance companies (NBFCs).
In a circular addressed to all NBFCs operating in Oman, the CBO noted that although globalisation of financial services, innovations in technology and the increasing ease of carrying out financial transactions have augured well for the financial system, it has nonetheless thrown up the challenge of protecting the sanctity of the system from the nefarious attacks of fraudsters.
The CBO urged all NBFCs to be increasingly on guard to foil the attempts of fraudsters, as these frauds, it said, apart from exposing the vulnerability of the systems/processes of NBFCs, have other undesirable ramifications as well.
'Frauds have rapidly evolved as a continuous threat. Importantly, frauds are a threat to the public trust and the trust, as will be appreciated, is the very basis on which the financial system operates and hence, has to be zealously guarded', the CBO said in its circular.
The central bank further advised that NBFCs have to pro-actively attune their policies, procedures, processes and technologies in line with the emerging trends and development and stay ahead of the adversaries.
'They (NBFCs) should also unequivocally commit themselves to prevent frauds/dishonesty and actively promote an enterprise-wide anti-fraud culture. A greater responsibility has now been cast on the board and senior management of NBFCs to effectively manage fraud risk and the CBO expects their focused attention in this regard', the circular said.
The CBO added, 'It should be ensured that NBFCs do not dilute the fraud risk management oversight/requirements on grounds that their businesses are small in size and their operations are limited when compared to banks'.
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