مقاله انگلیسی رایگان در مورد نقش حسابرسان داخلی در نقض پذیرش نقدی ضد پولی – SSRN 2018

Money Laundering (ML) has been announced to be a major priority to fight against by the international community; this is mainly due to its destructive consequences on the integrity and stability of the financial sector and economy. ML is the process by which the source of assets (usually cash) is concealed to obscure the link between the funds and the original criminal activity (International Monetary Fund 2016). The Banking sector is the gatekeeper of any financial system and thus, is more vulnerable to ML and many other fraudulent activities. At the same time, almost all banks use intelligent systems to track and report any suspicious activity, such systems need certain controls because failure of handling them produces higher systematic risk. Thus, stronger internal controls are required to prevent ML. According to Basel Committee on Banking Supervision (BCBS), an efficient internal audit independently and objectively evaluates the effectiveness of banks’ controls, risk management and governance processes (Basel Institute of Governance 2016). The BCBS requires banks to have internal audit function (IAF) with sufficient authority, stature, independence and resources. Thus, the involvement of IAs in IT governance creates new opportunities in the Banking sector to fight ML and assess such risk. The Egyptian Banking sector after the 25th of January revolution is moving steadily towards becoming the biggest financial centre in the region through expanding to non-traditional services such as investment consultations, brokerage and mutual funds. Thus, more integrity and transparency is needed through combating ML, Kassem and Higson (2015) argues that reviewing ML research in Egypt showed a huge gap, thus the current study aims at filling this gap by evaluating the Egyptian Banking sector’s ability to comply to AML programs through highlighting the major vital role of the IA, especially in such an intensive IT environment. This paper attempts to answer the following question: Does the banks IA’s involvement in IT Governance contribute to effective AML compliance review? We have identified the research hypotheses according to the state of art in the extant literature. The data used to test the hypotheses were collected through a questionnaire, which was distributed among IAs in the Egyptian Banking sector and a response rate of 38% was reached, this paper is constructed as follows: the next section contains the conceptual framework and discussion of the literature review and thus the derivation of the research hypotheses, followed by a section to present the research methodology; target population, sample and research constructs. The third section discusses the research findings and the fourth section displays conclusions and discussion. The final section highlights the main research limitations and future research.