The Effectiveness of Anti-Money Laundering /Counter Financing of Terrorism Requirements in Fund Management Companies/ Norziaton Ismail Khan ... [et al.]

Abdul Jani, Mohamad Asri and Zulkifli, Anis Asfarina and Ismail Khan, Norziaton (2021) The Effectiveness of Anti-Money Laundering /Counter Financing of Terrorism Requirements in Fund Management Companies/ Norziaton Ismail Khan ... [et al.]. International Journal of Service Management and Sustainability (IJSMS), 6 (2). pp. 1-24. ISSN 2550-1569

Abstract

Anti-Money Laundering / Counter Financing of Terrorism (AML/CFT) broadly encompasses regulatory requirements, acts and guidelines designed to curtail the practice of generating funds through unlawful or criminal activities. Several infringement notices were issued to market intermediaries due to provision breaches of the guidelines. Although policies and procedures have been tightened up to the level of satisfaction, assessing the effectiveness of AML/CFT legislation is still necessary. The main aim of the study is to examine the independent variables, namely
competency level of compliance team members, regulatory compliance and quality of AML/CFT framework that influence the effectiveness of AML/CFT requirements of the compliance officers that are working in FMCs in Malaysia. The Expectancy Theory has been applied to form the framework and to develop the hypotheses. Three hypotheses were developed and tested using the data from 70 samples of FMC's in Malaysia. The result of the study showed that there were significant relationships between the factors analysed in this study. This study will help the financial institutions especially the Fund Management Companies (FMCs) in understanding the factors that influence the effectiveness of AML/CFT requirements and taking necessary action to enhance their internal AML/CFT process and its compliance with the regulations. This would help the FMCs to have effective control of AML/CFT during the on-boarding and ongoing monitoring process.

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Item Type: Article
Creators:
Creators
Email / ID Num.
Abdul Jani, Mohamad Asri
mohdasriabj@gmail.com
Zulkifli, Anis Asfarina
eynazik@yahoo.com
Ismail Khan, Norziaton
norzi153@uitm.edu.my
Subjects: H Social Sciences > HB Economic Theory. Demography > Business cycles. Economic fluctuations. Economic indicators > Finance and cycles. Financial crises. Convergence (Economics)
H Social Sciences > HG Finance > Malaysia
H Social Sciences > HV Social pathology. Social and public welfare. Criminology > Commercial crimes. Financial crimes. White collar crimes
H Social Sciences > HV Social pathology. Social and public welfare. Criminology > Money laundering
Divisions: Universiti Teknologi MARA, Sarawak
Journal or Publication Title: International Journal of Service Management and Sustainability (IJSMS)
UiTM Journal Collections: UiTM Journal > International Journal of Service Management and Sustainability (IJSMS)
ISSN: 2550-1569
Volume: 6
Number: 2
Page Range: pp. 1-24
Keywords: Compliance, money laundering, regulatory compliance, quality framework
Date: 30 September 2021
URI: https://ir.uitm.edu.my/id/eprint/53384
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