TITLE:
Anti-Money Laundering Compliance and Financial Performance of Selected Commercial Banks in South Sudan: A Survey of Literature on Compliance Audits
AUTHORS:
Abraham Telar Nicknora
KEYWORDS:
Anti-Money Laundering, Audits, Financial Performance, Compliance Audits, South Sudan
JOURNAL NAME:
Open Journal of Business and Management,
Vol.12 No.5,
September
24,
2024
ABSTRACT: This research explores the link between anti-money laundering (AML) compliance and the financial performance of commercial banks in South Sudan, with a focus on compliance audits as a key measure. Using a mixed-method approach and cross-sectional survey design, data were gathered from 105 participants across four commercial banks: Cooperative Bank, Equity Bank, Horizon Bank, and National Bank of Egypt. Despite significant challenges in combating money laundering in South Sudan, the findings show a robust and positive effort towards compliance audits within the financial sector. The results reveal a strong positive correlation (r = 0.864, p = 0.000, n = 86) between compliance audits and financial performance. Additionally, regression analysis shows that compliance audits explain 74.3% (Adjusted R Square) of the variance in financial performance. The study concludes that there is a strong positive relationship between compliance audits and financial performance, suggesting that South Sudan’s financial institutions are diligently working to meet AML regulations, thus improving their financial performance.