The Central Vigilance Commission (CVC) has reconstituted the advisory board on Banking and Financial Frauds (ABBFF).
Key points
- ABBFF conducts the first level examination of bank frauds before recommendations or references are made to investigative by agencies such as Central Bureau of Investigation (CBI).
- The reconstituted APBFF will be chaired by Suresh N Patel, former Central Vigilance Commissioner.
- Besides the Chairman, there are four Members and the tenure of the Chairman/ Members would be for two years with effect from August 21.
- The ABBFF has been empowered to examine the role of officials/ wholetime directors (including ex-officials/ ex-wholetime directors) in public sector banks, public sector insurance companies; and public sector financial institutions in case of frauds amounting to ₹ 3 crore and above.
- The CVC has now stipulated that all PSBs, public sector insurance companies, and public sector financial institutions should refer all matters of frauds involving ₹3 crore and above to the board for advice.
- This has to be done before initiation of criminal investigation and the competent authority should consider the advice tendered by ABBFF regarding involvement of criminality/malafide of the officials, in all such cases, the CVC order said.
- CVC or CBI may also refer any case/technical matter to the ABBFF for its advice.
- ABBFF has also been empowered to periodically carry out frauds analysis in the financial system and give inputs, if any, for policy formulation related to the frauds, to RBI and CVC.
- The ABBFF — which will be headquartered in New Delhi — will have to ordinarily, within a month of receipt of the initial reference, tender the advice as may be requisitioned by the Ministry/Department/CVC or the investigation agency ( including the Delhi Special Police Establishment) .
