This study explores the role of internal auditors as forensic accountants in performing Customer Due Diligence (CDD) as an Anti-Money Laundering (AML) tool in MENA financial institutions, namely in Jordan, Kuwait, Bahrain, and Qatar. This article examines the effectiveness of internal auditors in combatting money laundering and the competences required for this function. The study presents a conceptual model based on three theoretical frameworks: Resource Based View Theory (RBVT), Competence Motivational Theory (CMT), and Transformative Learning Theory (TLT). A detailed literature analysis is conducted to analyze current CDD procedures in selected MENA countries, as well as an evaluation of the skills and competencies necessary for internal auditors to properly perform forensic accounting responsibilities. The findings show that internal auditors may efficiently execute CDD as forensic accountants if they are equipped with the necessary skills and competencies. The report underlines the importance of ongoing professional growth and adaptation in the changing landscape of financial crime prevention. This paper contributes to the current literature by providing a new perspective on the role of internal auditors in the financial industry in reducing financial crimes such as money laundering, distinguishing it from previous research that focused primarily on the relationship between forensic accounting and corporate governance. This article has significant implications for financial institutions, regulators, and academia. It underlines the need for improved internal auditor training and development programs, as well as a proactive approach to AML procedures. It also provides insights into the decision-making processes for insourcing vs outsourcing the CDD process, with the ultimate objective of improving the integrity of the MENA region’s financial institutions.