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Countering Terrorism-Financing by Accredited Money Changers in the Enforcement of Anti-Money Laundering Laws

Year: 2025
Type: article
Study design: Observational Study
Abstract: Aim: This study examined the level of implementation of counter-terrorism financing measures among Accredited Money Changers (AMCs), assessed the differences in perceptions of money changers, customers, and the Anti-Money Laundering Council (AMLC), and identified the degree of seriousness of problems encountered in enforcing Anti-Money Laundering Act (AMLA) provisions. Methodology:The study employed a descriptive-comparative research design.A total of 242 respondents were selected through purposive sampling.Median scores and the Mann-Whitney U Test were employed to measure implementation levels and perception differences across groups.Results: Results revealed that money changers rated "Know Your Customer" (KYC), valid ID presentation, recordkeeping, and transaction monitoring as highly implemented, while customers perceived them only as implemented, indicating a perceptual gap in compliance enforcement.Comparisons between money changers and AMLC yielded no significant differences, suggesting alignment in regulatory and institutional perspectives.On the other hand, both money changers and customers recognized common problems such as privacy concerns, limited access to valid IDs, and low awareness of AMLA regulations, although no significant differences emerged between their assessments.Conclusion: The study concludes that while AMCs demonstrate substantial compliance with AMLA requirements, gaps remain in customer awareness, trust, and engagement in AML processes.Strengthening financial literacy campaigns, improving ID accessibility, digitizing KYC recordkeeping, and enhancing collaboration between AMCs and AMLC are recommended to sustain effective counter-terrorism financing efforts.
DOI: 10.63498/etcor438
Language: English
Open Access status: bronze
OpenAlex ID: W4413305233
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