Financial crimes are a very neglected area of concern. The police are barely able to cope with the situation in this regard. In the first place, they are found widely equipped regarding training and have specialised knowledge to investigate the cases of financial crimes. Some financial crimes are simple in nature. But even these require probably training and aptitude of a special kind that most police personnel at the moment do not have or the same is yet to be inculcated among them through selective training. Other such crimes are complex in nature and clearly call for specialist knowledge and training, which are simply beyond the knowledge and training base of police officials in the country. Thus, it is no wonder that the police could submit chargesheet in relation to only 4,200 cases of financial crimes out of some 10,400 committed in the country during the last six years and this was reported in newspapers.
This situation is highly undesirable especially against the backdrop of the country's growing economy. Investment activities leading to economic growth are helped by many factors and proper enforcement of the laws relating to financial litigations or the aggrieved parties getting quick redress from their application and enforcement -- is a chief one among those.
A special squad of the police can be formed to exclusively deal with such crimes or personnel in the general police force can be made competent through systematic and resourceful training, to improve their know-how and skills to efficiently investigate cases of financial crimes. If a special police squad is set up and adequately trained, then it should have better chances of investigating sophisticated cases of financial crimes like the alleged manipulations of shares in the capital market by some companies in the share scam of some years ago or against activities of money laundering.
Treating of financial crimes also call for much improved institutional vigilance. Banks and other financial institutions need to streamline their operating systems so that none can take a free ride on their resources. Sensational cases were reported over the years about cashiers who fled with huge amounts of bank money. Then there were also other reported cases of embezzlement involving banking resources or depositors' funds. The best deterrence to such crimes can be no other than bank management from the highest level further tightening security measures so that none can attempt to pilfer the banks' resources. The central bank has also a very important role to play in goading the scheduled banks to mandatorily adopt further security measures. The accounts and related sections of many government bodies seem to be in disarray in respect of rationalising expenditures or devising proper accountability procedures that help in the breeding of serious financial crimes causing huge waste and theft of resources. Only building better institutional capabilities to watch over expenditures and to audit them can go a long way in bringing down these cases of financial crimes.
The laws of the central bank as well as other laws need to be immediately and very strictly applied against the activities of private organisations which operate in the garb of non-government organisations, charitable bodies or cooperatives societies whereas their operations look like banking, although they have no legal approval to carry out such banking activities. They usually defraud their clients at some stage. Thus there is an urgent need to crack down extensively on such fraudulent organisations.