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The effect of compliance with the anti-money laundering law on the performance of banks and financial and credit institutions
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Mohammad Ali Ghaffari1   , Mojtaba Daraei |
| 1- , urmiadiako12909@gmail.com |
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Abstract: (34 Views) |
Objective: The banking industry, as a part of the financial system of any country, has a serious role in the economy of that country. In short, this task is summarized in the preparation of resources and its allocation among economic enterprises. The more efficient the banking system is in performing this task, the more effective it will be in realizing the country's economic growth. The important point is that the performance of the banking system depends on what factors and how much does a factor such as compliance with the anti-money laundering law affect the performance of banks? It is clear that many factors affect the performance of banks, and in addition to internal factors, the occurrence of any shock or inefficiency in the economic system will directly affect the activity of banks and ultimately their performance, considering the special and sensitive role of banks in the country's economic system. Among these factors, the variable of anti-money laundering is a factor whose observance has different sensitivities in Iran's economy because it affects the resources and expenses of banks, therefore; The aim of the current research is whether compliance with the anti-money laundering law has a meaningful effect on the performance of banks or not? Therefore, CAMELS indicators have been used for banks' performance.
Research Method: From the point of view of the implementation process, this research is a quantitative research, which means that it collected and analyzed quantitative data with an objective attitude. The hypothesis test was done using a regression model and the statistical sample consisted of 20 private and state banks of Iran in the five-year period from 2019 to 2024.
Results: The research results show that compliance with anti-money laundering law has a negative and significant relationship on capital adequacy and asset quality, a positive and meaningful relationship on liquidity, and no significant effect on profitability.
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Article number: 19 |
| Keywords: Anti-money Laundering, bank performance, CAMELS Indicators, Capital Adequacy, Asset Quality, Liquidity, Profitability. |
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Full-Text [PDF 798 kb]
(6 Downloads)
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Article type: Research |
Subject:
Special
Received: 2025/01/6 | Accepted: 2025/05/19 | Published: 2026/05/31
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