This research delves into the nexus between anti-money laundering (AML) compliance and the financial performance of selected commercial banks in South Sudan, a country still on the FATF grey list despite substantial governmental investments in AML initiatives. Utilizing a cross-sectional and mixed-method design, the study specifically aimed to scrutinize the relationship between internal policies and the financial performance of commercial banks. Drawing from a sample of 105 participants across four banks, a comprehensive dataset comprising both quantitative and qualitative information was gathered. The findings underscore a noteworthy connection between internal policies and financial performance (r = 0.436, p= 0.000, n = 86), suggesting that improvements in internal policies may enhance financial outcomes. This study emphasizes the pivotal role of robust internal policies in fostering AML compliance and subsequently enhancing the financial well-being of commercial banks in South Sudan.
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