BackThe Banking Mohtasib (Ombudsman) Pakistan has issued the eleventh Annual Report for the year ending 31 December 2015. The total number of complaints received by the Banking Mohtasib in 2015 showed an overall increase of 35% compared to 2014. The Annual Report also includes an analysis of systemic deficiencies and control weaknesses in banks and shows fifteen case-studies based on some of the leading decisions of Banking Mohtasib.
A sizeable increase in the cases related to the Internet Bank fund transfer and Bancassurance have been highlighted in the report. Emphasis has been made that the Banks should take proactive and remedial steps to prevent such frauds and also orient their customers regarding the risk involved in carrying out the online transactions and safety measures to be adopted by them to minimize their risks.
The report recommends to establish a clear mechanism to ensure meticulous compliance of the guidelines of State Bank as well as Security Exchange Commission Pakistan in terms of sale of Third Party Products/ Bancassurance so that the customers with zero appetite for the products are saved from the losses caused due to mis-selling.
Various aspects of investigation of ATMs related complaints have also been discussed which include non-availability of CCTV footages/ disparity in its preservation period, installation of inappropriate/ defective cameras at ATM vestibules and skimming of ATM cards etc. Recommendations have thus been made that SBP may issue appropriate instructions to harmonize ATM related transaction with regard to uniform preservation period of CCTV footage and introduction of a standardized Audit Roll by all banks coupled with strict monitoring of functioning of ATM’s particularly in the far flung, undeveloped areas of the country.
Introduction of “PIN-Based” usage of credit card has also been suggested to prevent unauthorized use of lost or forcibly snatched Debit/ Credit Cards.
Further, attention of Senior Management of the banks has also been drawn towards non-implementation of effective dual control at its branches which has resulted in increase in cases of frauds through parallel banking.
Source: Banking Mohtasib (Ombudsman) Pakistan
