David Mathuva, Samuel Kiragu and Dulacha Barako
This study aims to examine the extent and drivers of anti-money laundering (AML) disclosures in the audited annual reports of regional listed banks in Kenya.
Abstract
Purpose
This study aims to examine the extent and drivers of anti-money laundering (AML) disclosures in the audited annual reports of regional listed banks in Kenya.
Design/methodology/approach
Using the Financial Action Task Force recommendations and other guidelines, the authors develop an AML disclosure index that is used to score the extent of AML disclosures by banks. A sample of 15 listed regional banks in Kenya over the period of 2007-2017 is used. Using this sample, the authors performed fixed-effects regressions to identify the significant determinants of AML disclosures.
Findings
The study establishes a low level of AML disclosures in the audited annual reports of sampled banks. The extent to which the AML disclosures improved across three distinct regulatory regimes over the period of 2007-2017 is reported. The authors find that the AML disclosures are largely driven by corporate governance (board size and audit committee size) and the ratio of diaspora remittances to GDP.
Practical implications
Owing to the global nature of money laundering activities, the study suggests that the Central Bank of Kenya needs to internationalize AML regulations and follow internationally accepted best practices in AML to respond to emerging trends in money laundering and related crimes.
Originality/value
To the best knowledge of the researchers, this is perhaps the first study to examine the drivers of AML disclosures by banks in a developing economy in the East and Southern African region. Given the global nature of money laundering, the study makes an important and original contribution to the body of knowledge with potential for replication in other jurisdictions. The findings will also form a basis for developing an AML reporting or disclosure framework.
Details
Keywords
Emmanuel Coleman, Isaac Kwesi Nooni, Samuel Korenteng Fianko, Linka Dadzie, Ebenezer Nickson Neequaye, Jasmine Owusu-Agyemang and Edna Obuo Ansa-Asare
This study aims to investigate the attainment of quality in Government of Ghana’s (GoG) infrastructural projects through effective contract management and especially, relating to…
Abstract
Purpose
This study aims to investigate the attainment of quality in Government of Ghana’s (GoG) infrastructural projects through effective contract management and especially, relating to qualification, competence and experience of supply chain stakeholders.
Design/methodology/approach
A survey questionnaire and field observations were used to collect primary data from staff of the education ministry and construction professionals. Documentary analyses of contract documents were also undertaken.
Findings
The results show that executing agencies’ failure to apply appropriate contract management processes was linked to the gap between stakeholders’ knowledge and actual practice. This was confirmed by Spearman’s rho tests of correlation between overall mean ranks given by professionals and non-professionals, which indicated strong agreement between those groups. Factors such as contractors’ engagement of unqualified supervisory staff, lack of proper projects monitoring and evaluation by executing agencies mainly contribute to the poor quality of work.
Research limitations/implications
Investigations were limited to the Funds and Procurement Management Unit of the Ministry of Education, Metropolitan, Municipal and District Assemblies and local contractors. Nonetheless, the methodology used could be used in future studies to analyse the socio-economic implications on the quality of education infrastructure.
Practical implications
Construction is booming in Ghana but the capacity to improve the work quality through effective contract management is limited. However, with the effort of stakeholder and statutory bodies’ support in capacity building initiatives, GoG projects could offer some novel solutions to improve quality of work.
Social implications
Construction industry professionals and students’ knowledge and perception on construction industry and contract management is significantly improved.
Originality/value
This study provides information on respondents’ knowledge on contract management process, which, if not properly understood, can lead to poor quality of work and loss of money.