Money Laundering Practices and Operational Efficiency of Deposit Money Banks in Nigeria

Rasheed Olatunji Animasaun, Omobolade Stephen Ogundele, Ganiyu Olusoji Salami

Abstract


This study examined the extent to which operational efficiency is influenced by the legal framework of money laundering in Nigerian commercial banks. It determined the degree of effect which the institutional and the regulatory frameworks for the practices of money laundering have on the operation’s efficiency of deposit money banks. These were to provide information on the nexus between the efficiency and the frameworks for the practices of money laundering within the banking sector in Nigeria. The research design used in this work was a survey. This work used primary data through the structured questionnaires. 900 personnel were selected as a sample size using stratified random sampling. The targeted population were the workers and customers of listed deposit money banks in Nigeria. This research work analysed the data using simple percentages as a descriptive analysis and analysis of variance (ANOVA) as an inferential statistic. The work showed that the operational efficiency of deposit money banks was significantly influenced by the legal framework for the practices of money laundering in Nigeria (t = 9.59; p < 0.05). In addition, the operational efficiency of deposit money banks was significantly affected by both the institutional framework and the regulatory framework for the practices of money laundering in Nigeria (t = 3.59; p < 0.05 and t = 2.12; p < 0.05 respectively). In conclusion, the operational efficiency of Nigerian deposit money banks changed significantly as a result of the formulation of frameworks for the practices of money laundering.


Keywords


Financial Institutions; Financial Stability; Frameworks; Regulations; Statutes

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DOI: http://dx.doi.org/10.18415/ijmmu.v11i5.5740

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