| dc.description.abstract | Money laundering is an economic crime that has adversely affected the level of economic
development in the economies of African countries. Money laundering has a notorious
tendency to discourage or frustrate legitimate business enterprise, corrupt the financial
systems and ultimately collapse the economy. This paper examined the effect of anti-money
laundering regulation implementation on the financial performance of commercial
banks in Kenya.
The study focused on 31 Commercial banks who responded to the questionnaire which
was used to collect data. The research was conducted through a descriptive survey. The
study used both primary and secondary sources of data. Data was analyzed using
Statistical Package for Social Sciences and findings presented by of tables.
From the findings, the study concludes that bank reporting affects AML these has lead to
increased transactional costs due to screening and the reporting frequency that the bank
has instituted as well broadened the types of reports prepared. The study further
concludes that operational costs affect the performance of commercial banks in Kenya to
a very great extent due to increased/high transaction costs that the bank incur including
training staff on identification of suspicious activities. In view of the findings, the study
recommended that to ensure the stability and integrity of the financial system the
financial action task force (FATF) should continue to be implemented in addition to
regulatory and institutional framework under the AML Act, in collaboration with the
Central Bank of Kenya (CBK). | en_US |
