The Role of Information Governance in Mitigating Financial Crime Risks in Stablecoin Transactions

Olalekan Jamiu Okunleye *

University of the Cumberlands, 104 Maple Drive, Williamsburg, KY 40769, United States of America.

*Author to whom correspondence should be addressed.


Abstract

This study investigates the role of information governance in mitigating financial crime risks in stablecoin transactions. Using a variety of analytical techniques, including simple linear regression, sentiment analysis with NLP tools, logistic regression, and machine learning models, the research evaluates the impact of information governance on innovation, user trust, financial crimes, and the effectiveness of combined compliance measures. The findings indicate that strict information governance regulations reduce innovation but enhance market stability and user trust. Robust governance correlates strongly with increased user adoption, while higher anonymity features in stablecoins are linked to a higher incidence of financial crimes. Integrating KYC/AML compliance with transaction monitoring significantly improves the detection and prevention of financial crimes compared to standalone approaches. These insights provide valuable guidance for policymakers, regulatory authorities, and financial institutions to develop strategies that balance innovation with enhanced security and compliance in the stablecoin market.

Keywords: Information governance, stablecoins, financial crimes, KYC/AML compliance, user trust


How to Cite

Okunleye, Olalekan Jamiu. 2024. “The Role of Information Governance in Mitigating Financial Crime Risks in Stablecoin Transactions”. Journal of Engineering Research and Reports 26 (7):317-33. https://doi.org/10.9734/jerr/2024/v26i71212.

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