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Article
The regulatory technology “RegTech” and money laundering prevention in Islamic and conventional banking industry
Heliyon
  • Meaad Turki, Ahlia University
  • Allam Hamdan, Ahlia University
  • Richard Thomas Cummings, Ahlia University
  • Adel Sarea, Ahlia University
  • Magdalena Karolak, Zayed University
  • Mohammad Anasweh, Mutah University
Document Type
Article
Publication Date
10-1-2020
Abstract

© 2020 The Authors This study aims to illustrate the impact of adopting Regulatory technology (RegTech) innovations in banks on money laundering prevention effectiveness using Bahrain as a case study. Bahrain has strived to position itself as the banking center of the Arabian Gulf, hence the results of this novel research are informative of the practices in the region. The primary data for this study was collected through a survey instrument distributed to 100 bankers working in Bahrain with expertise in compliance. The results of multivariate analysis indicate that transactions monitoring through RegTech and cost- and time-saving aspects of RegTech, drive money laundering prevention effectiveness to a highly statistically significant extent. However, electronic know your customer (KYC) technologies are insignificant as drivers. This research not only sheds light on the efficacy of RegTech but also raises general awareness concerning the adoption and integration of RegTech platforms for fighting money laundering. In particular, the findings provide specific insights about the deployment of RegTech capabilities in banks in regional banking centers of modest scale.

Publisher
Elsevier Ltd
Keywords
  • Anti money laundering (AML),
  • Business management,
  • Business policy,
  • Corporate finance,
  • International finance,
  • Know your customer (KYC) compliance,
  • Regulatory technology (RegTech),
  • Sustainable business
Scopus ID

85092188778

Creative Commons License
Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International
Indexed in Scopus
Yes
Open Access
Yes
Open Access Type
Gold: This publication is openly available in an open access journal/series
Citation Information
Meaad Turki, Allam Hamdan, Richard Thomas Cummings, Adel Sarea, et al.. "The regulatory technology “RegTech” and money laundering prevention in Islamic and conventional banking industry" Heliyon Vol. 6 Iss. 10 (2020) p. e04949 ISSN: <p><a href="https://v2.sherpa.ac.uk/id/publication/issn/2405-8440" target="_blank">2405-8440</a></p>
Available at: http://works.bepress.com/magdalena-karolak/7/