The Role of the Audit Committee in Raising the Efficiency of the Internal Control System to Combat Money Laundering in Jordanian Banks

Posted: 19 Dec 2012

Date Written: December 17, 2012

Abstract

The Study Objectives: This study aims to indicate the role of the Audit Committee in raising the efficiency of the internal control system to combat money laundering through the tasks assigned to evaluate internal control systems, and support the work of internal audit department in considering internal control systems to combat money laundering and in developing the appropriate mechanism to ensure the bank compliance with application of anti-money laundering instructions. It also aims to support the external Audit in evaluating the bank procedures and policies related to internal control system for anti-money laundering, and the bank administration compliance with the application of the provisions of anti-money laundering law and the report thereto in the annual report.

Methodology of the Study: To achieve the objectives of the study, the researcher has used the approach in order to achieve the objectives of the study. The inductive approach has been used that is based on collecting, analyzing and interpreting the study key elements data in order to build its theoretical framework depending on accounting and audit literature that addressed the issue of the Audit Committee and internal control systems for anti-money laundering and deductive approach which is based on making a questionnaire on the Audit Committee activities to raise the efficiency of internal control systems to combat money laundering. These activities have been distributed to the Audit Committee member, the internal auditor and external auditor.

The Study Results: - The Audit Committee contributes at high degree to raising the efficiency of the internal control system to combat money laundering in the Jordanian banks through its activities in evaluating the internal control system.

- The Audit Committee contributes at high degree to raising the efficiency of the internal control system to combat money laundering in the Jordanian banks through its activities in support of the internal audit function.

- The Audit Committee contributes at a high degree to raising the efficiency of the internal control system to combat money laundering in the Jordanian banks through its activities in support of the external audit.

Keywords: The Audit Committee, Internal Control System, Money Laundering

JEL Classification: M42

Suggested Citation

Kasswna, Reem Oqab, The Role of the Audit Committee in Raising the Efficiency of the Internal Control System to Combat Money Laundering in Jordanian Banks (December 17, 2012). Available at SSRN: https://ssrn.com/abstract=2190427

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