IDEAS home Printed from https://ideas.repec.org/a/jfr/afr111/v12y2023i4p72.html
   My bibliography  Save this article

Role of Due Diligence in Combating Money Laundering in Lens of ESG: A Concept

Author

Listed:
  • Yusri Hazrol Yusoff
  • Tengku Puteri Nurqistina Tengku Md Hadzlan
  • Siti Salihah Ahmad Nazli
  • Suhartila Soid
  • Roslina Abdul Rahim
  • Norfatiha Mohd Mohd Nor

Abstract

This study focuses on the implementation of Customer Due Diligence (CDD) requirements under Section 16 of the Anti-Money Laundering Act (AMLA) in Reporting Institutions (RIs). While RIs have established policies and procedures to comply with AMLA and mitigate risks associated with money laundering, there needs to be more emphasis on gathering information to address Environmental, Social, and Governance (ESG) Factors. ESG concerns have become increasingly important in the financial sector, but many institutions need help integrating ESG considerations into their due diligence processes. This study explores the incorporation of ESG due diligence within CDD practices, as it is crucial for long-term value creation, investor returns, and mitigating ESG risks that might be exposed to money laundering. This research aims to identify and propose practical strategies for integrating ESG factors into the customer evaluation process of RIs OR investigate factors that influence the role of due diligence in combating money laundering through the lens of ESG. This paper examines factors that influence the function of due diligence in tackling money laundering through the lens of ESG.

Suggested Citation

  • Yusri Hazrol Yusoff & Tengku Puteri Nurqistina Tengku Md Hadzlan & Siti Salihah Ahmad Nazli & Suhartila Soid & Roslina Abdul Rahim & Norfatiha Mohd Mohd Nor, 2023. "Role of Due Diligence in Combating Money Laundering in Lens of ESG: A Concept," Accounting and Finance Research, Sciedu Press, vol. 12(4), pages 1-72, November.
    • Handle: RePEc:jfr:afr111:v:12:y:2023:i:4:p:72
    as

    Download full text from publisher

    File URL: https://www.sciedupress.com/journal/index.php/afr/article/download/24723/15376
    Download Restriction: no
    File URL: https://www.sciedupress.com/journal/index.php/afr/article/view/24723
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:afr111:v:12:y:2023:i:4:p:72. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sciedu Press (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.