₹590 crore lost, controls intact—on paper. The IDFC FIRST Bank Chandigarh episode exposes a hard truth: compliance doesn’t equal control. When insiders collude, maker–checker frameworks become rituals. Internal Audit must move beyond tick-box reviews to forensic skepticism—questioning data, analysing patterns, and confirming balances independently—before frauds surface through clients instead of controls.
In 432 BCE, tensions between Athens and Megara resulted in the Megarian Decree, an early economic sanction. Modern sanctions have evolved, exemplified by the U.S. and EU's financial restrictions on Russia after its 2022 invasion of Ukraine. AI is transforming compliance processes in the realm of sanctions, though human oversight remains essential. Financial institutions face both compliance challenges and legal risks, underscoring the need for meticulous records and adherence to regulations.
Indrajit Roy Choudhury 