Internal Audit and the Independent Review of Anti-Money laundering Compliance in Nigeria

Usman Owolabi¹ , Adewoye Abimbola²

Section:Research Paper, Product Type: Journal-Paper
Vol.8 , Issue.3 , pp.52-58, Sep-2020

Online published on Sep 30, 2020

Copyright © Usman Owolabi, Adewoye Abimbola . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
The study examined the role of “Internal Audit in the Independent Review of Anti-Money laundering (AML) Compliance in Nigeria”. Primary data sourced through administration of two hundred and forty-five (245) copies of a structured questionnaire on the staff of internal audit department / AML compliance department of sampled NDMBs and FIUs were used for this study. Pearson Product Moment Correlation Coefficient (PPMCC) was adopted to ascertain whether regular independent AML compliance reviews are critical to the fight against money laundering. Pooled OLS was used to evaluate the extent at which enacted laws in Nigeria have discouraged money laundering tendencies among Nigerians. The results showed positive relationship between regular independent AML compliance reviews and the fight against money laundering and the extent at which enacted laws in Nigeria have discouraged money laundering tendencies among Nigerians Hence, the study concluded that there exist positive significant relationship between modeled regular independent AML compliance review and critical fight against money laundering; and the extent at which enacted laws have discouraged ML tendencies among Nigerian. It is therefore recommended that anti-money laundering compliance officers of NDMBs should monitor and enforce strict compliance with the reporting standard in relation to financial statement and other financial dealings of customers.

Key-Words / Index Term :
Money Laundering, Internal Audit, Independent Review, Compliance, AML

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