Strengthening Reversed Authentication for the Money Laundering Act with the Predicate Offense of Corruption in an Effort to Return the State Financial Losses 52 Journal of Law, Policy and Globalization 2016

52 J.L. Pol'y & Globalization 151 (2016)
Strengthening Reversed Authentication for the Money Laundering Act with the Predicate Offense of Corruption in an Effort to Return the State Financial Losses

handle is hein.journals/jawpglob52 and id is 152 raw text is:

Journal of Law, Policy and Globalization wwwjiste org
ISSN 2224-3240 (Paper) ISSN 2224-3259 (Online)
liSTE
Vol.52, 2016

Strenghtening Reversed Authentication for the Money
Laundering Act with the Predicate Offense of Corruption in an

Effort to Return the State Financial Losses

Wagiman1 Hartiwiningsih2 Jamal Wiwoho3
University Of Sebelas Maret, Surakarta, Indonesia

Abstract
This dissertation research aims to determine, assess, and analyze the causes of the difficulty of implementation
of the system of reversed authentication in the eradication of money laundering with corruption cases
substantially, from the aspect of legal system. This study is also prescriptive; to create an optimal model for
reversed authentication system in money laundering. This fonnulation is expected to be a breakthrough in the
framework of the law indemnification of state financial. This study is a non-doctrinal legal research. The
research approach is the approach of legislation, a comparative approach, and case approach. The data used are
primary data and secondary data. Various obstacles encountered in the implementation of this reversed
authentication system. Obscurity system settings of reversed authentication, the principle of disobedience and
lawlessness events in AML Law, causes ineffective, bias and lead to contradictions in its application. On the
other hand, the institutional structure of law enforcement officers do not apply synergistic, particularly in
activities exposing the predicate crime, namely corruption, and weak asset tracing, the impact is the lack of
indemnification of state. Judicial practice so far, does not give priority to the predicate crime, the charges of
money laundering separated from the underlying predicate crime. Asset tracing is also not maximizing in
collecting the evidence related to the predicate crime. Legal culture factor also does not yet support the operation
of the law enforcement system, due to the low awareness and honesty of society, including law enforcement
officers. Related to the constraints encountered, it is submitted recommendations, such as: the approach needs to
be formulated in rem and illicit enrichment in the Law on Money Laundering and the Law on Corruption
Eradication. It is extremely beneficial for the process of reversed authentication. In addition, there should be a
procedural law governing the procedures, mechanisms and legal consequences in application of reversed
authentication, both for the defendant and the public prosecutor. On the institutional aspects of law enforcement,
asset tracing function should be empowered with the support of an investigative audit. The existence of clear
standards in the coordination and supervision functions performed by the Corruption Eradication Commission
(KPK) in the form of uniformity in eradicating money laundering and corruption must be absolutely exist. In
terms of strengthening the legal culture against law enforcement officers carried out by applying the function of
reward and punishment. As for the public, the socialization and education efforts are continuous and efficient by
involving all the relevant elements.
Keywords: strenghtening system, reversed authentication, money laundering, return the state financial losses.

A. BACKGROUND
Corruption never stand alone, in addition to being one of the predicate crime of money laundering, corruption is
always in need of money laundering (hereinafter referred to as AML) in an attempt to hide the acquisition of the
proceeds of corruption. The basic purpose of money laundering is to hide or eliminate the origins of the money
from law enforcement.4 Money laundering is often associated with organized crime - although it is possible to do
individually - carried out by intellectuals (white collar crime) as well as economic crimes.5 In terms of territory,
money laundering is considered a transnational crime and even international crime, because the modus operandi
that is typically cross border.
Money laundering is the most dominant type of crime is done mainly through the financial system.

1 Doctoral Students of Law, Universitas Sebelas Maret Surakarta, Indonesia.
2 Promotor, Universitas Sebelas Maret Surakarta, Indonesia.
3 Co Promotor, Universitas Sebelas Maret Surakarta, Indonesia.
I Sutan Remy Sjahdeii, Inside Money Laundering and Financing Terrorism, Pustaka Utama Grafiti, Jakarta,
2007,p. 13.
1 The phrase white collar crime was first discovered by a criminologist named Edwin H. Sutherland, the
concept of white collar crime was developed to demonstrate a set of offenses involving monetary and
economic action in the broad sense. Sutherland formulated the white collar crime as a crime committed by
people who have a high social standing and honorable in his work (crime committed by person of
respectability and high social status in the course of Reviews their occupation). See: Setiono, Corporate
Crime, Bayumnedia, Malang, 2004,p.35

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