The Role of Electronic Compliance in Reducing Money Laundering Operations in Libyan Commercial Banks "A Field Study on Public Commercial Banks in the Eastern Region"

Abstract

This study aimed to identify the role of electronic compliance in terms of customer risk assessment, behavioral detection technology, and workflow processes in reducing money laundering activities in Libyan commercial banks. The study reached a set of findings: There is a significant role for customer risk assessment systems, behavioral detection technology systems, and workflow and reporting systems in reducing money laundering operations in Libyan commercial banks. The study recommended enhancing the implementation of electronic compliance systems by developing the customer risk assessment system and updating customer data periodically to ensure accurate and effective classification according to potential risk levels, given its proven effectiveness in reducing money laundering activities. It also recommended investing in financial behavior detection technology and adopting artificial intelligence techniques to analyze unusual patterns and detect suspicious transactions early. Additionally, the study called for improving workflow and reporting systems within banks to ensure efficient information exchange and accurate reports submitted to the relevant authorities, as well as organizing periodic training programs for compliance and internal audit staff to enhance their capabilities in using anti–money laundering systems and related modern technologies.