The Impacts of money laundering in financial institution. A Case study of Harare CBD banks
- Author
-
Chieza, Sasha T.
- Title
- The Impacts of money laundering in financial institution. A Case study of Harare CBD banks
- Abstract
- Over the past few years, Zimbabwe's banking sector has been fragile, experiencing several bank failures that resulted in the loss of billions of dollars through money laundering. A significant portion of money laundering cases (over 70%) are only detected after they have already been completed. This study aimed to document the nature and impacts of money laundering in the financial institution and the effectiveness of the anti money laundering measures, with a specific focus on the financial institutions in Harare CBD. The study had four objectives: to document the nature of money laundering in the financial sector, to determine the causes of money laundering in the financial sector, to identify the negative impacts of money laundering on the financial sector, and to understand the challenges of combating money laundering. The researcher utilized a descriptive case study research design on a sample size of 40 participants, using questionnaires and interviews as the primary data collection instruments. The study's respondents were chosen using judgemental and random sampling procedures. The Statistical Package for Social Sciences (SPSS) version 20 and Microsoft Excel 2013 was used to analyze the data. , with the results presented using tables, bar graphs, and pie charts. The study found that weak regulatory frameworks and corruption were the primary causes of money laundering in the financial institution. The most significant negative impact of money laundering on institutions is that it damages their reputation and results in operational risks. Lack of resources was identified as the primary challenge in combating money laundering, and the measures in place to combat money laundering were deemed inadequate. The researcher recommended implementing artificial intelligence and machine learning,utilizing blockchain technology, and providing technical assistance and guidance where necessary to combat money laundering effectively.
- Date
- June 2023
- Publisher
- BUSE
- Keywords
- Money Laundering,
- Banks,
- Supervisor
- Mr. Gombarume,
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