Increase in scams due to ‘computer program’ inefficiencies, banks accountable: Qasim

Jumhoory Party (JP) leader and Maamigili MP Qasim Ibrahim said on Tuesday that scam cases have been surging owing to inefficiencies in the ‘computer program’ used by the banks.

While referring to the digital banking infrastructure and its inadequacies, the veteran lawmaker said that the banks should also be held accountable for the loss of monies from customers’ accounts.

He made the statements while debating on the amendment bill to the Criminal Procedure Act, seeking to authorize Maldives Police Service to freeze bank accounts suspected for involvement in scams without requiring a court warrant.

The bill was sponsored by opposition Maldivian Democratic Party (MDP) lawmaker from North-Galolhu constituency, Mohamed Ibrahim (Kudoo), and is an amendment to Article 73(a) of the Criminal Procedure Act.

Qasim said that scams, and deceptive transfer of monies from accounts have been increasing at an alarming pace. He also said that such scams are not prevalent in other countries.

Speaking on the same bill, Qasim said that scams were not common when bank cheques were employed to deposit and withdraw money, but have become more prevalent with the rise of technological advancements, digital alternatives, and machineries.

“Regardless of reform, it is the bank’s responsibility to establish security ensuring the monies deposited by customers are protected, which is something I strongly believe. I also believe the issue is due to inefficiencies with the computer program,” Qasim said.

While noting that banks should be held accountable for the money lost in scams, Qasim called for reforms to the Banking Act as well.

He also urged for software upgrades to strengthen safety protocols in banking and said any other measures without addressing these is useless. Qasim further said the parliament must assess the steps taken by Bank of Maldives (BML) or any other bank in recovering the monies lost in scams.

“I would be supporting any amendments proposed after thorough research, but we must agree that the amendment proposed presently is inadequate to solve this matter fully,” the veteran lawmaker added.

As per current law, police are required to seek a court warrant to freeze bank accounts if they suspect any bank account is utilized for major criminal activities including scams. The amendment seeks to bypass the requirement for a court warrant, thereby saving time for the law enforcement authority to reach the culprits.

The amendment also stipulates that such orders can be issued by police officers of sub-inspector rank or above. The bill further proposes police to promptly flag these accounts with the Maldives Monetary Authority (MMA) and the bank where the suspected accounts have been opened.