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Financial self efficacy as a mediator of artificial intelligence use in detecting money laundering and financial fraud in Jordanian Islamic banks

This study examines the mediating role of financial self-efficacy in the relationship between artificial intelligence (AI) adoption and the perceived effectiveness of detecting money laundering and financial fraud in Jordanian Islamic banks. The study addresses a behavioral and institutional gap in the literature by explaining how AI-supported monitoring capabilities may be translated into effective regulatory action through employees’ confidence in interpreting and using AI-generated outputs. A quantitative cro…

By the Truvace desk2 min read1 sourcePeer-reviewedTRV-2026-2126· cite & verify
Financial self efficacy as a mediator of artificial intelligence use in detecting money laundering and financial fraud in Jordanian Islamic banks
PATTERNS OF ABUSE: ASSESSING BANK SECRECY ACT COMPLIANCE AND ENFORCEMENT by Committee on Banking, Housing, and Urban Affairs. Public domain

In brief

Researchers surveyed 115 employees in compliance, Shariah supervision, internal audit, auditing, and risk management roles at Jordanian Islamic banks. They tested whether employees' confidence in using AI outputs links AI adoption to how effective they judge money laundering and fraud detection to be.

The results suggest that AI tools matter partly through the people who interpret them, so training and oversight may shape whether monitoring translates into regulatory action. Because the data are perceptions from a single cross-sectional survey, the findings do not show actual detection rates or causation.

Main points

  1. The study used a quantitative cross-sectional questionnaire with 35 items covering AI adoption, financial self-efficacy, perceived detection effectiveness, and demographics.
  2. AI adoption had a positive effect on financial self-efficacy (β = 0.640, p < 0.001).
  3. Financial self-efficacy had a positive effect on perceived detection effectiveness (β = 0.491, p < 0.001).
  4. The variance accounted for (VAF) value of 51.46% indicates complementary partial mediation.
  5. The authors recommend AI monitoring paired with structured training, human-in-the-loop governance, and Shariah-sensitive procedures.

The gain

Among 115 compliance and audit staff in Jordanian Islamic banks, higher AI adoption was associated with greater perceived AML and fraud detection effectiveness, partly through employees' financial self-efficacy.

The rundown

The analysis used reliability and validity tests, correlation analysis, standardized multiple regression, and regression-based mediation analysis. The direct effect of AI adoption on perceived detection effectiveness stayed significant after accounting for self-efficacy (β = 0.296, p = 0.001).

The indirect effect through financial self-efficacy was 0.314 (Sobel z = 4.806, p < 0.001). Because both the direct and indirect effects were significant, the authors describe the mediation as complementary and partial.

The authors frame the work as addressing a behavioral and institutional gap in the literature: how AI-supported monitoring becomes effective regulatory action through employees' confidence in interpreting and using AI-generated outputs.

Sources

  1. Peer-reviewedDiscover Sustainability2026-10-20

The debate