An in-Depth Analysis of the Impact of Anti-Money Laundering Regulations on the Financing and Sustainability of Small and Medium-Sized Enterprises (SMES)
Year: 2025
Type: article
Abstract: This research investigates the impact of Anti-Money Laundering (AML) on financing and sustainability of (SMEs).Therefore, through the application of quasi-experimental research design, the study compared two distinct groups over a period of five years; matched Small and Medium-Sized Enterprises implementing only minimal compliance requirements (n=10) verses SMEs with comprehensive AML compliance programs (n=10).Operational efficiency indicators and financial performance metrics were examined using difference-in-differences statistical analysis.The findings revealed that there were no any statistically significant differences between the two groups in terms of financial performance, which failed to confirm the hypothesis.Nevertheless, difference-in-differences Small and Medium-Sized Enterprises with Anti-Money Laundering compliance showed significantly excellent operational efficiency metrics of (M=77.6)when compared to minimal compliance group (M=68.6),which led to a confirmation of the second hypothesis of the study.The findings suggested that while implementing a strong Anti-Money Laundering compliance process might not provide financial benefits that are immediate for SMEs, it does not contribute to promote operational efficiency, which might promote support for long-term organizational sustainability in an ecosystem that is characterized with increase of regulations.The study also addressed important knowledge gaps regarding the specific effects of AML regulation frameworks on small and medium enterprises, providing evidence-based insights for leaders within SMEs in developing compliance strategies that balance regulatory requirements with various business objectives.
Author: Firas Khaled Hamed Tanash
Language: English
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4411516834