Inherent Money Laundering Risk and Maqashid Sharia Interactions on Internal Control in Islamic Banking

Dimas Kenn Syahrir; Zuhairan Yunmi Yunan; Desmadi Saharuddin; Rahmawati Rahmawati; Alejandro Pacheco-Jaramillo

doi:10.59593/amlcft.2026.v4i2.286

Authors

Dimas Kenn Syahrir Indonesian Financial Intelligence Unit (PPATK), https://orcid.org/0000-0002-5886-4050
Zuhairan Yunmi Yunan Faculty of Economics and Business, UIN Syarif Hidayatullah, https://orcid.org/0000-0001-5920-7522
Desmadi Saharuddin Faculty of Economics and Business, UIN Syarif Hidayatullah, https://orcid.org/0000-0003-3663-725X
Rahmawati Rahmawati Faculty of Economics and Business, UIN Syarif Hidayatullah,
Alejandro Pacheco-Jaramillo University of Canberra, https://orcid.org/0000-0002-4208-5546

DOI:

https://doi.org/10.59593/amlcft.2026.v4i2.286

Keywords:

Inherent Risk, Internal Control, Islamic Banking, Maqashid Sharia, Money Laundering

Abstract

Money laundering risk in Indonesia’s banking industry has trended upwards, while suspicious transaction reporting (LTKM) by Islamic commercial banks shows a distinctive and volatile pattern, with reported values declining sharply. The interplay between inherent money laundering risks, maqashid sharia principles, and the internal control of the AML/CFT programme in Islamic banking remains underexplored. This study examines the influence of four inherent money laundering risks and maqashid sharia principles on the internal control of the AML/CFT programme, and tests maqashid sharia as a moderating variable. Using a quantitative approach, data from 170 respondents representing the three lines of defence in 13 Indonesian Islamic commercial banks were analysed with PLS-SEM. The results show that customer risk, product/service/transaction risk, and delivery channel risk each significantly influence internal control, whereas country risk does not. Maqashid sharia significantly influences internal control as an independent variable but does not act as a moderator, indicating that it operates as a stable ethical foundation rather than an amplifier of risk effects. The novelty of this study lies in integrating maqashid sharia into the AML/CFT internal control model, implying that Islamic banks should implement maqashid sharia simultaneously with risk-based controls, particularly the detection of customer risk.

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