INTERNAL AUDIT AND INDEPENDENCE REVIEW OF ANTI-MONEY LAUNDERING COMPLIANCE IN NIGERIA

Abstract

The extent of review of Anti-Money Laundering compliance by internal audit system may be seen as a major solution to some of the challenges posed by this scourge but regardless of the existence of internal audit department, this scourge still persists. Hence, the study examines the role of internal audit in the Independent Audit in the Independence Review of Anti-Money laundering (AML) Compliance in Nigeria. Primary data sourced through administration of Two hundred and forty-five(245) copies of a structured questionnaire on the staff of internal audit department and compliances department and compliance  department of sampled NDMBs and FIUs were used for this study, Person Product Moment Correlation Coefficient (PPMCC) was adopted to ascertain whether regular  independent  AML compliance review  are critical to fight against money laundering and while pooled OLS was used to evaluate the extended at which enacted laws in Nigeria have discourage money laundering tendencies among Nigerians.

The results showed positive relationship between regular independent AML compliances reviews and fight against money launderings (B= 0.8620,  0.0983; 0.4222; 0.0683,  p  > 0.0000) and the extent which enacted laws in Nigeria have discourage money laundering tendencies among Nigerians (B=2.373417: -19.53504 Hence the study concluded that there exists positive significant relationship between modeled regular independence AML  compliance review and critical fight against money laundering; and the extent at which enacted laws  have discouraged ML tendencies among Nigerians. It is therefore recommended that anti-money laundering compliance officers of NDMBs should monitor and enforce strict compliances with the reporting standard in relation to financial dealing of customers.