PERSONAL TRAITS AND ATTITUDE AS DETERMINANTS OF COMPLIANCE OFFICERS IN REPORTING SUSPICIOUS TRANSACTION (STRS)
DOI:
https://doi.org/10.35631/AIJBES.829022Keywords:
Attitude, Money Laundering, Personal Traits, Suspicious Transaction Report, ComplianceAbstract
The increasing sophistication of money laundering and terrorism financing has intensified the need for effective Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) compliance within the global financial sector. In Malaysia, Reporting Institutions are legally required under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) to identify and report suspicious financial activities through Suspicious Transaction Reports (STRs). As the frontline personnel responsible for detecting and escalating suspicious transactions, compliance officers play a critical role in protecting the integrity of the financial system. Nevertheless, recent regulatory enforcement actions by Bank Negara Malaysia suggest that deficiencies in STR reporting continue to occur, highlighting the importance of understanding the human factors that influence reporting effectiveness. This conceptual paper examines the roles of personal traits and attitudes in shaping the STR reporting capability of compliance officers within Malaysian banking institutions. Drawing upon relevant literature in organizational behavior, ethics, and regulatory compliance, the paper argues that individual characteristics such as conscientiousness, integrity, ethical orientation, and positive attitudes toward regulatory compliance are fundamental in influencing professional judgement and reporting behavior. The paper further discusses how these behavioral attributes may enhance compliance officers' ability to identify, assess, and report suspicious financial activities accurately and in a timely manner. By synthesizing existing literature, this paper provides a conceptual understanding of the relationship between personal traits, attitudes, and STR reporting capability. The proposed framework contributes to the growing body of AML/CFT literature by highlighting the importance of behavioral factors in strengthening regulatory compliance. It also offers practical insights for financial institutions and regulators in developing recruitment, training, and professional development initiatives aimed at enhancing the effectiveness of suspicious transaction reporting and financial crime prevention.
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