Jurnal Ekonomi & Keuangan Islam
Volume 8 No. 1, January 2022

Solutions to money laundering prevention through Regulatory Technology (RegTech): Evidence from Islamic and conventional banks

Alivia Meyrizka Utami (Alumnae of Master of Science in Management Program, Faculty of Economic and Business, Universitas Gadjah Mada, Yogyakarta, Indonesia.)
Mega Dwi Septivani (Alumnae of Master of Science in Management Program, Faculty of Economic and Business, Universitas Gadjah Mada, Yogyakarta, Indonesia.)



Article Info

Publish Date
01 Feb 2022

Abstract

Purpose – This study aims to examine the effect of the relationship between RegTech and Money Laundering Prevention (MLP). This study also examines the differences between RegTech in Islamic and conventional banks.Methodology – The current study used explanatory research to test hypotheses using primary data obtained through a survey with a questionnaire conducted online with 100 respondents from bank employees, both conventional and Islamic in Indonesia. In addition, an independent t-test was used.Findings – The results reveal that Transaction Monitoring (TM) and Cost and Time (CT) significantly affect MLP, while electronic Know Your Customer (eKYC) does not affect MLP. The comparative test of the differences in RegTech in Islamic and conventional banks confirm differences in transaction monitoring and cost efficiency between Islamic and conventional banks. At the same time, there is no difference in eKYC between Islamic and conventional banks.Originality – Research related to RegTech in Islamic and conventional banks' money laundering prevention efforts is still very limited in Indonesia. This study will contribute to the existing literature on Islamic finance and the development of financial technology in Indonesia.

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Journal Info

Abbrev

JEKI

Publisher

Subject

Economics, Econometrics & Finance

Description

AIMS Jurnal Ekonomi dan Keuangan Islam (JEKI) covers in detail a large number of topics related to Islamic Economics and Islamic Finance, comprising the latest empirical studies, country-specific studies, policy evaluations on Islamic economics and comparative international Islamic finance. This ...