The Impact of Anti-money laundering regulations on the Zimbabwean banking System. A case of Commercial Banks in Harare CBD.
- Author
- Asiyanto Kasaa
- Title
-
The Impact of Anti-money laundering regulations on the Zimbabwean banking System. A case of Commercial Banks in Harare CBD.
- Abstract
- Money laundering can be recognized as the global issue and has a tendency of undermining business enterprises and limits foreign direct investments. Anti-money laundering regulations were put in place to fight money laundering in the banking system and their success depends on the level of compliance by these banks. This has prompted the researcher to investigate the impact of Anti-Money Laundering (AML) regulations in the commercial banks of Zimbabwe. Using descriptive survey research design, data was collected through structured questionnaires and interviews administered to management and departmental heads of commercial banks, and was analyzed through graphs and pie charts with the help of Statistical Package for Social Sciences (SPSS) and Microsoft excel. A total of 60 questionnaires were distributed to three banks, Central Bank of Zimbabwe (CBZ), First Capital bank and ZB bank, with 20 questionnaires per bank. A combination of purposive and snowball sampling techniques was used to expand the population and to access hard-to-reach participants. The study identified the causes of money laundering in the banking system with corruption as the major cause. It also brought to light the measures applied by banks noticing the importance of staff training on AML issues, the centralized customer account opening center, and customer identification screening programs in countering money laundering. Also, it found that, even though AML regulations are associated with increased operational costs and related expenses, there is a direct relationship between these regulations and banking performance as they enhance investor confidence. The study then suggests that the stability and integrity of the financial system in Zimbabwe can be enhanced through continued implementation of the Financial Action Task Force (FATF) recommendations, as well as collaborative efforts between regulatory bodies and the commercial banks of Zimbabwe. The study recommends further research to explore the effectiveness of AML regulations in other financial institutions and to obtain more representative data over a longer period of time.
- Date
- 2023
- Publisher
- BUSE
- Keywords
- Money laundering
- Commercial banks
- Supervisor
- N/A
- Media
-
KASAA ASIYANTO.pdf