Legal Question in Administrative Law in Pakistan

*** After occurrence of any financial fraud in banks, the Internal Audit Department conducts detailed investigation in to the matter and prepares two Investigation/Audit Reports one for bank's internal purposes and other for showing to regulatory authorities, Courts and Banking Mohtashib in case the complainant/account holder whose funds had been embezzled lodges complaint. The purpose of preparing two reports is that the Internal Report contains all the details of fraud including lapses on the part of bank/bank officials which banks do not want to be disclosed to the regulators/courts as it constitute evidences against the bank itself. Please advise is it legitimate on the part of banks to adopt such practice and isn't concealment of facts and punishable under the law.


Asked on 4/27/13, 8:48 pm

1 Answer from Attorneys
Gulbaz Mushtaq

It is clear that fraud and embezzlement is crime. And apart from banking regulations which prohibit tempering with records, erasing evidence of a crime is punishable under section 201 of PPC.

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Answered on 11/25/13, 2:50 pm


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