Effect of the anti-money laundering/counter financing terrorism act 2013, on deposit mobilization of deposit money banks in Nigeria
DOI:
https://doi.org/10.33003/jocaf-2026.v1i2.24.34-43Abstract
This paper aims to examine the effect of adoption of the AML/CFT Act 2013 on deposit mobilization of listed Deposit Money Banks in Nigeria. The study is of two-period design: the time before and after the adoption of AML/CFT laws. The study used a sample of five banks out of the entire listed Deposit Money Banks on the Nigerian Stock Exchange. Secondary data were used and extracted from the Annual reports of the sampled Banks and the National Bureau of Statistics (NBS) from 2003 to 2012 and 2014 to 2023. The result revealed that Foreign Trade has a negative significant impact on deposit growth of the listed Deposit Money Banks, and Foreign Remittance has a positive significant impact on deposit growth. While Fraudulent Transactions, Cost of Fund, Bank Size, and crypto-currencies are found to have no significant influence on deposit growth before adoption of the Act. On the other hand, the result with regard to the central aim of the study shows that AML/CFT adoption impacts the deposit growth of Deposit Money Banks, because it has not resulted in the loss of key clients for banks and also has not become a hurdle to attract new depositors. It is recommended that, the AML/CFT compliance should be followed up by strict scrutiny from time to time by relevant authorities. Deposit Money Banks' top management is required to engage in public awareness concerning the law to narrow the perception differences of its customers, and should also improve its system of non-price measures.
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Copyright (c) 2026 Yakubu Umar, Yusuf Sani, Adamu Adamu Idris (Author)
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