An Evaluation of Anti-Money Laundering (AML) Compliance Practices and Participant Involvement in Due Diligence Procedures

Abstract

This article examines the concept, purpose, and evolution of Anti-Money Laundering (AML) regulations, highlighting global and national efforts to combat illicit financial activities. Drawing on existing literature, the study discusses how financial institutions implement due diligence, Know Your Customer (KYC), and reporting obligations outlined by regulatory authorities such as the U.S. Department of the Treasury and Nigeria’s Money Laundering Act. The article further analyzes quantitative data collected from respondents on their involvement in AML activities, including the frequency of due diligence engagements and the extent of participation in AML processes over the past 24 months. Findings indicate a relatively high level of AML involvement among respondents, revealing important insights into compliance operations and areas requiring improvement.