Saudi Arabia Establishes Joint Operation Centre To Combat Banking Frauds
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Roshan Amiri
- . July 26, 2022
- . Update: July 27, 2022 2:38 pm
Saudi arabia– Financial fraud is a menace that many Middle Eastern countries are trying to avoid. In order to prevent any further embarrassment to its own economy, Saudi Arabia has decided to launch a Joint Operation Centre.
Towards this, the Saudi Central Bank has launched the joint operations center for all the banks in the Kingdom that will help to monitor cases of financial fraud. This was confirmed by local media sources.
The center was inaugurated by the central bank’s governor, Fahd bin Abdullah Al-Mubarak. Here, the center seeks to improve the customer experience and tackle confirmed cases of financial fraud that Saudi bank customers may be exposed to.
Over the years, banking frauds have been on the rise. In 2018, according to statistics, approximately 1,063 cases of fraud worth a total of around SR49 million ($13 million) were reported this year, down from 2,613 (SR170 million). The most common types of frauds to be reported were making of anonymous phone calls asking people to update their banking record and personal information, electronic methods of stealing financial data, and credit card fraud particularly targeting travelers.
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Along with the new center, Saudi Arabian Monetary Authority (SAMA) has also announced plans towards the completion of connectivity to the Saudi Business Center utilizing its Tanfeeth program. The solution aims at optimizing system connectivity and integration between Saudi government entities and banks operating in Saudi Arabia, according to SAMA’s statement. In coordination with government entities, the Tanfeeth program seeks to promote operational efficiency by overcoming procedural hurdles.
The establishment of this center comes from SAMA’s permanent support for the local banking sector’s stability and the enhancement of confidence in it, pursuant to the tasks and powers entrusted to the central bank under its regulations and Banking Control Law, Al-Mubarak explained.
This includes setting instructions and procedures to protect clients of banks operating in the Kingdom, besides taking the appropriate measures to reduce the commission of customer-related fraudulent acts.
