Money laundering risk judgement and decision-making: influences of customer due diligence process and bank employees' expertise

摘要

This study examines the influence of customer due diligence (CDD) process and bank employees' expertise on their judgement and decision making when assessing money laundering risk. The authors utilised an experimental approach where a case-based questionnaire was gathered from 122 employees in three major banks in Malaysia. Results indicated a significant relationship between the extent of the CDD process with bank employees' judgement and decision-making in assessing money laundering risk. This relationship is moderated by employees expertise, which indicates that it is crucial for the right employees with suitable qualifications to be employed as CDD process can be done better with enhanced articulation and informed judgement. The findings could provide useful insights into the judgement capabilities of bank employees with reference to the rigorousness of the CDD process and their expertise in assessing risk.