An internal control model proposal for payment and electronic money institutions

Establishing and implementing an effective internal control model for financial institutions is vital in preventing errors, fraud, and abuses that may occur, making the financial sector predictable, increasing the quality of the services provided, and thus ensuring economic development. In the literature, studies focus on specific topics that affect the internal control structure of different financial institutions. However, Payment and Electronic Money Institutions, a particular type of financial institution with unique dynamics counting on information technologies and regulations, are understudied. There is also a need for a framework that holistically addresses the interaction of the different components on which the internal control process is based. Accordingly, this thesis proposes an internal control model that has been developed for Payment and Electronic Money Institutions. The relationships and interactions between the components that make up this model are presented in detail. In this way, a framework is introduced that can contribute to the literature gap and guide practitioners in developing an efficient internal control system. In addition, this thesis provides a fruitful research ground for future studies.