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18/02/2002
AIB may seek help from other banks following fraud case
A report in a national UK Sunday newspaper has claimed the Allied Irish Bank (AIB) has approached other banks to ask for help on how to improve its financial controls.
According to the Sunday Telegraph newspaper, the AIB are seeking help following the recent discovery of an alleged £517 million fraud at US subsidiary Allfirst in which the bank blamed the actions of currency trader John Rusnak.
The move is viewed as highly unusual and is likely to raise yet more questions about AIB's internal controls and risk management processes.
The FBI and AIB are both currently investigating the circumstances behind the $750m loss. However, Mr Rusnak's lawyers have insisted that their client did not steal money from the bank.
While it is normal for an external expert to be appointed to check internal systems following a breach of security such as this recent fraud case, many industry observers consider AIB's approach to rival banks as an indication that it has little confidence in its ability to impose tighter controls and better risk management systems.
(MB)
According to the Sunday Telegraph newspaper, the AIB are seeking help following the recent discovery of an alleged £517 million fraud at US subsidiary Allfirst in which the bank blamed the actions of currency trader John Rusnak.
The move is viewed as highly unusual and is likely to raise yet more questions about AIB's internal controls and risk management processes.
The FBI and AIB are both currently investigating the circumstances behind the $750m loss. However, Mr Rusnak's lawyers have insisted that their client did not steal money from the bank.
While it is normal for an external expert to be appointed to check internal systems following a breach of security such as this recent fraud case, many industry observers consider AIB's approach to rival banks as an indication that it has little confidence in its ability to impose tighter controls and better risk management systems.
(MB)
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