To what extent has money laundering affected Financial Institutions and how to mitigate the risks associated with it: A case study of EmiratesNBD

Abstract

The purpose of the study was to evaluate the money laundering challenge on financial institutions and recommending strategic approaches’ through which financial institutions can overcome the posed risks. In this case, the study investigated the various sources of money laundering schemes, the AML skills required, and the role of self regulation and existing loopholes respectively. In collecting the required study data, the review used a qualitative study approach, where a total of five interview respondents were sampled through a purposive sampling approach and findings analysed through a qualitative content analysis approach. The study findings demonstrated that money laundering sources varied from currency smuggling, banks complacency through currency conversion and asset conversion, to use of false export and import invoice, and the use of false loans respectively. Moreover, the study established that the primary AML team’s skills included research and ICT skills competencies as well as an integrity and transparent personality. Finally, the review concluded that self-regulation was critical. Thus, the study commented that entities should focus on staff skills development and ICT systems security enhancement respectively. Key Words: Money laundering, Anti-money laundering, complacency, team skills, self-regulation.