<![CDATA[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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