Financial intelligent investigations in combating money laundering crime. An Indonesian legal perspective

Author:Anastasia Suhartati Lukito
Position:Criminal Law Department, University of Surabaya, Faculty of Law, Surabaya, Indonesia
Pages:92-102
SUMMARY

Purpose - The purpose of this paper is to analyze the functions of financial intelligent investigations by the Indonesian financial intelligent unit in conjunction with the participating reporting parties, to consider the obstacles and challenges to reduce money laundering cases in Indonesia, realizing that the role of the financial intelligent investigations not only... (see full summary)

 
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Financial intelligent
investigations in combating
money laundering crime
An Indonesian legal perspective
Anastasia Suhartati Lukito
University of Surabaya, Faculty of Law, Surabaya, Indonesia
Abstract
Purpose – The purpose of this paper is to analyze the functions of nancial intelligent investigations
by the Indonesian nancial intelligent unit in conjunction with the participating reporting parties, to
consider the obstacles and challenges to reduce money laundering cases in Indonesia, realizing that the
role of the nancial intelligent investigations not only conducted by Indonesian Financial Intelligent
Unit itself but the active participation from reporting parties such as banking institution. The function
of nancial intelligent unit in supervising and monitoring cash nancial transactions is importance in
ght against economic crimes, particularly in the anti-money laundering regime.
Design/methodology/approach This paper explores the Indonesian laws on prevention and
eradication on money laundering crime and analyzing the importance role of nancial intelligent
investigations and disruption of money laundering crime.
Findings – The nancial intelligent investigations will become an important strategy to combating
the economic crime such as money laundering and corruption. The new perspective is needed to
developing the good synergy in the nancial intelligent unit and reporting parties to maximizing the
eradication of money laundering cases.
Practical implications The paper can be a source to explore about the money laundering
eradication based on Indonesia legal perspective.
Originality/value – This paper gives contributions by encouraging the nancial intelligent unit in
conjunction with all the nancial institutions to disrupt any money laundering activities, which is
associated to other predicate crimes and attempting to conceal the illegal funds derived from illegal
activities that commonly happened in Indonesia.
Keywords Financial intelligent unit, Financial investigation, Money laundering crime,
Reporting parties
Paper type Viewpoint
Introduction
World-wide trade between countries has substantially increased in recent years, and one
consequence of this globalized economic activity is a parallel escalation in economic
crime; this remains a major threat to many countries including Indonesia. As a
developing country, economic crime in Indonesia – corruption, money laundering, tax
evasion and so forth – has grown substantially, which is in turn having a negative
impact both economically and morally. Based on Indonesian Financial Transaction
Reports and Analysis Centre statistics, between January 2014 and July 2014, there were
a total of 11,816 suspicious transaction reports (STR) from the banking institutions and
a total of 7,448 STR from non-banking institutions (Indonesian Financial Transaction
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1368-5201.htm
JMLC
19,1
92
Journalof Money Laundering
Control
Vol.19 No. 1, 2016
pp.92-102
©Emerald Group Publishing Limited
1368-5201
DOI 10.1108/JMLC-09-2014-0029

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