EFFECT OF DIGITAL FORENSIC ACCOUNTING ANALYTICS ON DETECTIONAND DISRUPTION OF MONEY LAUNDERING ACTIVITIES IN NIGERIANFINANCIAL INSTITUTIONS

Abstract

The introduction of digital forensic accounting in financial institutions has emerged as an
important area of specialization due to its critical role in fraud management and financial
crime prevention. This study evaluates the effect of digital forensic accounting on fraud
management in selected financial institutions in Nigeria. To achieve this objective, primary
data were collected through questionnaires administered to relevant experts in selected
financial institutions in Kogi State, Nigeria. The data collected were analyzed using both
descriptive and inferential statistical techniques with the aid of the Statistical Package for the
Social Sciences (SPSS Version 26). The findings revealed that digital forensic investigation
has a significant positive effect on both money laundering detection and money laundering
disruption within financial institutions. The study further found that the application of digital
forensic accounting has contributed substantially to the reduction of fraudulent activities,
particularly money laundering, in Nigeria's financial sector. The study concludes that digital
forensic accounting is an effective tool for enhancing fraud management and strengthening
the integrity of financial institutions. Consequently, the study recommends that regulatory
and supervisory agencies, particularly the Central Bank of Nigeria, the Economic and
Financial Crimes Commission, and other relevant government bodies, should periodically
review and update the operational guidelines governing digital forensic accounting
practices. Such reforms would enhance the capacity of financial institutions to detect and
prevent money laundering activities, improve regulatory compliance, and strengthen the
effectiveness of fraud mitigation mechanisms across the Nigerian financial system.