Prevention, Detection and Control of Fraud by Pension Fund Administrators (PFA) and Pension Fund Custodians (PFC) Under the Pension Reform Acts 2004 And 2014

Abstract

This paper examines the challenges of prevention, detection and control of fraud by Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) under the Pension Reform Acts, 2004 and 2014. It holds the view that since the activities of the PFAs and PFCs are critical to the attainment of the objectives of the Acts, their prescribed roles must be sufficiently monitored for compliance. The paper examines the concept of fraud, the roles of PFAs and PFCs and suggests some of the following control measures against fraud in pension fund management: installation of an effective accounting and internal control systems, ensuring that employees understand relevant codes of conduct, establishment of virile internal audit and appointment of audit committee among others. The paper concludes by recommending some for reaching steps to prevent and control fraud in pension funds management. These include; monitoring of RSA opening by senior staff, strengthening of pay procedure, and recruitment of right caliber of staff etc. Keywords: Internal Control, Compliance, Pension Fund Administrator, Pension Fund Custodians 1. INTRODUCTION