Assessment of the implementation of anti-money laundering policy: perspectives of corporate bank clients’ in Kenya
Abdikadir, Farah Faiza
Benefits of crime have been on the rise through the use of legitimization of a number of transactions by money launderers. To combat money-laundering activities, commercial banks have been given a greater role by Anti- Money Laundering legislations. Clients’ have to be screened for money laundering for them to be allowed to open accounts or transact. Most of the interaction between the bank and the clients’ from the onboarding stage are therefore guided by the Anti-Money Laundering policies. This study therefore sought to assess the implementation of the anti-money laundering in relation to corporate client perspectives within the commercial banks in Nairobi. The study was guided by three objectives which were: To establish the effects of corporate clients’ identification procedures on corporate client perspectives in commercial banks in Nairobi county; To examine the effects of corporate clients’ acceptance policy implementation on corporate clients’’ perspectives among commercial banks in Nairobi county; To determine the effects of transaction monitoring policy implementation on corporate clients’’ perspectives among commercial banks in Nairobi county. The study utilized cross sectional design. Data was collected from corporate clients’ of 20 randomly selected banks out the 42 banks in Nairobi. The study used stratified random sampling technique to select a sample of respondents from the bank clients’. The study used primary data, which was quantitative in nature. The primary data was collected using structured closed-ended questionnaires. After data collection, the filled-in and returned questionnaires were edited for completeness, coded and analyzed using Statistical Package for Social Sciences. The results showed that all the factors, which were corporate client identification, corporate client acceptance and transaction monitoring, were statistically significant in explaining corporate client perspectives among corporate clients’ in Nairobi County. Findings of the study may serve as a stepping-stone to researchers to conduct further studies on the same or similar topics. The investment regulators in the country such as the Capital Markets Authority (CMA), Kenya Banker Association (KBA) and Central bank of Kenya may use these study findings to understand the bottom-line impact of bank Anti-Money Laundering regulatory requirements on positive corporate client perspectives. Commercial banks will benefit from the findings and recommendations made by the study as they aim at bettering their client’s experience and general outlook. This study was only limited to Nairobi County. Similar studies should be made in other counties and jurisdictions and the findings compared to those of this study.
A thesis submitted in partial fulfillment of the requirement for the Degree of Master of Commerce at Strathmore University
Anti-money laundering policy, Corporate bank, Transactions