The Role of 2022 G20 Summit in the Context of Preventing and
Eradicating Money Laundering: Indonesian Perspective
Junior B. Gregorius
Universitas 17 Agustus 1945 Jakarta, Indonesia
Keywords: 2022 G20 Summit, Eradication, Money Laundering, Indonesian Perspective.
Abstract: The 2022 G20 Summit in Bali-Indonesia focuses on the issue of improving the economy of member
countries. However, because of the prevalence of economic crimes, especially money laundering, this article
intends to analyze the role of the 2022 G20 Summit in Bali-Indonesia in the context of preventing and
eradicating money laundering and Indonesia's efforts to improve the eradication of money laundering. By
using normative legal research methods with the support of data collected related to the G20 summit and the
crime of money laundering as well as the use of legal effectiveness theory according to Lawrence M.
Friedman supported by the thoughts of legal experts and observers of money laundering, this article
concludes that the role of the 2022 G20 Summit in efforts to eradicate this is already evidenthas been clearly
seen with the initial conferences held by G20 member countries with a special agenda in the fight against
money laundering. In addition, Indonesia is also making efforts to combat money laundering with various
efforts. Indonesia also invites all G20 member countries to fight together against the economic crimes,
especially money laundering so Indonesia will be able to fulfill various requirements to become a member
of the FATF.
1 INTRODUCTION
The 17th G20 Heads of State and Government
Summit will take place at November 2022 in Bali,
Indonesia. Various mass-media reported
(https://www.fatf-gafi.org) that the summit will be
the pinnacle of the G20 process and intense work
carried out within the Ministerial Meetings, Working
Groups, and Engagement Groups throughout the
year. Since its formation in 2008, the G20 Summit
has always discussed growth and development as
well as economic relations between member
countries. It is undeniable that the problem of
economic growth and progress of a country can be
influenced by the development of economic crime
and organized crime activity (Reid, 1995:425) which
is the concern of all countries in the world namely,
among others, money laundering and terrorism
financing (Simanjuntak, 2021:25), which has also
attracted the attention of G20 countries in every G20
Summit held.
This article sees that although it has been
scheduled that the talks at this 2022 G20 eeting will
prioritize economic issues among member countries
(https://finance.detik.com) but other issues that are
no less important and directly related to the
development and economic growth of the G20
member countries are the problem of money
laundering crimes.
In the last 20 years, money laundering crimes
have also grown very rapidly with various new
modes and ways of committing crimes (Sjahdeni,
2007:3-4). This is understandable because money
laundering generally includes illicit money, namely
the proceeds of crime, into the financial system. As a
result of money laundering, the amount of money in
circulation exceeds the amount determined and
monitored by the central bank of a country, so that
inflation is inevitable and the cost of basic
necessities is high (Juwana, 2006:83). This is one of
the reasons why money laundering is considered an
extraordinary crime because the consequences can
be miserable for many people (Sjahdeni, 2007:14).
To combat a crime of money laundering,
countries in the world criminalized some type of
crimes in various international regulation such as the
Convention Against Transnational Organized Crime
(TOC) (Atmasasmita, 2005:54) and other
international conventions (The Vienna Convention:
Gregorius, J.
The Role of 2022 G20 Summit in the Context of Preventing and Eradicating Money Laundering: Indonesian Perspective.
DOI: 10.5220/0011976700003582
In Proceedings of the 3rd International Seminar and Call for Paper (ISCP) UTA â
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ISBN: 978-989-758-654-5; ISSN: 2828-853X
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99
1988), specifically through The 40
Recommendations of Financial Action Task Force-
FATF1989 (FATF 1989) which in the first
Recommendation (A.-1) FATF states that “: Each
country should take immediate steps to ratify and to
implement fully, the 1988 United Nations
Convention Against Illicit Traffic in Narcotic, Drugs
and Psychotropic Substances 1988 (The Vienna
Convention: 1988).
In connection with the 1989 FATF
recommendation abovementioned, Indonesia
followed in the footsteps of the United States which
had criminalized money laundering by issuing the
Money Laundering Control Act 1986, as the first
law in the world to determine money laundering as a
crime (Sjahdeni, 2007:18). Based on the 1989 FATF
recommendation, Indonesia has ratified and
enforced various laws regarding the prevention and
eradication of the crime of money laundering,
namely: The Law Number 15 Year 2002 was later
amended by Law Number 25 Year 2003 (Gregorius,
2008:9) and lastly updated by Law Number 8 Year
2010.
In the observation of this article, various existing
legal facilities are considered unable to prevent and
eradicate money laundering optimally. This situation
places the importance of cooperation between
countries is very important considering that the
enforcement of money-laundering law often requires
international cooperation, fostered by organizations
such as Interpol (Simon and Schuster, 1979:1027).
Without the role of member countries and good
cooperation between them, efforts to combat these
crimes, especially money laundering, will
experience major obstacles, because the laws of each
country are no longer sufficient to combat money
laundering. In this case, it is necessary to increase
the role and efforts to prevent and eradicate money
laundering, especially by looking at the role of legal
structure, legal substance and legal culture as
important elements of legal effectiveness as referred
to by Lawrence M. Friedman (1984: 19-23).
Based on the above situation and condition, this
article views the importance of conducting research
and writing to analysis the role of the 2022 G20
summit in Bali in the context of preventing and
eradicating money laundering crimes and also to see
and analysis what are Indonesia's efforts to improve
the eradication of money laundering.
In addition to the introduction in the first part
above, this article will then describe the literature
review as a theoretical and regulation approach,
which are regarding the aims and objectives of the
formation of the G20 member countries as well as
on the meaning, scope and the implication of the law
on money laundering in force in Indonesia and also
some supports of thoughts from several criminal law
experts in part two. In the third part will describe the
research method and the result and discussion in the
fourth part. Finally, the conclusion will be described
in the section five thereafter.
2 LITERATURE REVIEW
2.1 The Purpose of the Formation of
the G20 Countries
The G20 is a multilateral cooperation forum
consisting of 19 countries, namely South Africa, the
United States, Saudi Arabia, Argentina, Australia,
Brazil, India, Indonesia, Britain, Japan, Germany,
Canada, Mexico, Republic of Korea, Russia, France,
China, Turkey and the European Union as well as
representatives from the International Monetary
Fund (IMF) and the World Bank (WB). The G20 is
the world's main economic forum that has a strategic
position because collectively it represents around
65% of the world's population, 79% of global
reserves, and at least 85% of the world's economy.
(Sherpa, G20 Indonesia, October 13th 2022,
bi.go.id, cnnindonesia.com 12 January 2022,
Bisnistempo.co 26 February 2022).
The formation of the G20 is inseparable from the
disappointment of the international community
towards the failure of the G7 in finding solutions to
the problems of the global economy faced at that
time. The view that emerged at that time was that it
was important for middle-income countries and
those with economic influence systematically to be
included in negotiations to find solutions to global
economic problems (cnnindonesia.com 12 January
2022).
In 1999, on the advice of the finance ministers of
the G7 countries (the United States, the United
Kingdom, Italy, Japan, Germany, Canada and
France), the finance ministers and central bank
governors of the G20 countries began holding
meetings to discuss the response to the global
financial crisis 1997-1999 (algovernanceproject.org).
Since then, meetings at the Minister of Finance level
have been held regularly in the autumn of
cnnindonesia.com, 12 January 2022, bi.go.id).
Based on the objectives of the formation of the
G20 countries abovementioned, this article assumes
that in order to improve, nourish and establish
economic cooperation among G20 member
countries, various meetings called the G20 Summit
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100
since 2008 in Washington until this 2022 G20
Summit in Bali, of course, also anticipates things
that hinder or interfere with the economic progress
of member countries such as the existence of cross-
border economic crimes. This article will only
highlight how the G20 Summit can play a role in
increasing efforts to eradicate money laundering in
Indonesia.
2.2 Definition and Sources of Money
Laundering Crimes
The definition of money laundering can be
understood from the following definitions: The
Financial Action Task Force on Money Laundering,
stated that “Money laundering is the processing of
these criminal proceeds to disguish their illegal
origin. This is of critical importance, as it enables
the criminal to enjoy their profits without jeopardize
their sources” (Asian Development Bank, 2003:4).
Another definition according to Black's Law
Dictionary, says, “Money Laundering is the act of
transferring illegally obtained money through
legitimate people or accounts so that its original
source can not be traced. An academic Sarah N.
Welling (1992:201) defines: Money laundering is
the process by which one conceals the existence,
illegal source, or illegal application of income and
than disguises that income to make it appear
legitimate. Another academic, Pamela H. Bucy
(1998:228) says, “Money Laundering is the
concealment of the existence, nature or illegal
sources of illicit funds in such a manner that funds
will appear legitimate if discovered.”
This article will quote and use the motion of
money laundering based on Article 3 of Indonesian
Law Number 8 Year 2010 regarding the prevention
and eradicating of Money laundering crimes, which
stated that:
“Any person who places, transfers, assigns,
spend, pay, donate, deposit, take abroad, change
shape, exchange with currency or securities or
other actions on assets that he knows or deserves
suspected to be the result of a criminal act as
referred to in Article 2 paragraph (1) with the
aim of hide or disguise the origin of the Treasure
Wealth is punished for the crime of Money
Laundering with a maximum imprisonment of 20
(twenty) years and a maximum fine of IDR
10,000,000,000.00 (ten billion rupiah).”
The definition of money laundering in the
description above is similar and it can be said that
Indonesian legislation related to money laundering
follows the same definition platform as that
proposed by The United Nation Convention Against
Illicit Traffic in Narcotics, Drugs, and Psychotropic
Substance of 1988. According to this institution,
money laundering is:
”The convertion or transfer of property
knowing that such property derived from the
purpose of concelling or assisting any person
which is involved in the commission of such an
offence to evade the legal consequences of the
true nature, sources, location, disposition,
momment, rights with respect to or ownership of
property knowing that such property is derived
from a serious offence or offences of from an act
of participation in such an offence.”
Besides that, in various criminal law literatures,
it is stated that the acts that are categorized as money
laundering are:
1. Placing, transferring, diverting, spending,
paying, granting, entrusting, bringing abroad,
changing form, exchanging with currency or
securities or other actions on assets which he
knows or reasonably suspects is a crime with
the aim of hiding or disguising origin of
wealth.
2. Conceal or disguise the origin, source,
location, designation, transfer of rights, or
actual ownership of assets which are known or
reasonably suspected to be the proceeds of a
criminal act.
3. Receiving, controlling the placement, transfer,
payment, grant, donation, safekeeping,
exchange or use of assets which are known or
reasonably suspected to be the proceeds of a
criminal act.
In addition to the description of various methods
and actions that are classified as money laundering,
Article 2 of Indonesian Money laundering law states
that there are more than 26 criminal acts that can be
considered as predicate crimes as a source of assets
that can be classified as money laundering crimes.
This is different from the previous law on money
laundering which states that predicate crime is not as
much as the provisions of Article 2 above. This
article seems that the classification of the source of
assets in question can differ from the rules of one
country to the rules in other countries. Besides that,
point 26 of Article 2 of the Indonesian Money
Laundering Law emphasizes that all actions related
to assets that are punishable by a minimum of 4
years are a predicate crime of a money laundering
crime.
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101
2.3 The Fact on of Indonesian Money
Laundering Law
Several media reports that
(https://finance.detik.com), Indonesia is currently not
registered as a member of the FATF (Financial
Action Task force), which is an international
institution whose main tasks include combating
criminal acts, money laundering and terrorism
financing. Coordinating Minister for Political, Legal
and Security Affairs of the Republic of Indonesia
(Menkopolhukam) Mahfud MD revealed that
Indonesia is the only G20 country that has not joined
the Financial Action Task Force (FATF) anti-money
laundering organization. Indonesia must obtain a
good rating in the FATF MER (Mutual Evaluation
Review) as a condition to be accepted as a member
of the FATF (https://finance.detik.com). According
to Mahfud's statement, Indonesia has just become a
member of the Asia Pacific Group on Money
laundering (APG), namely as one of the FATF-Style
Regional Bodies (FSRBs). In the FATF, Indonesia
has only become an observer. This situation
according to Edy O.S Hiariej (2006:115) Because
Indonesia has not been able to meet all the
requirements determined by the FATF as outlined in
the 40+9 recommendation, Indonesia is included in
the list of countries that are considered uncooperative
(Non-Cooperative and Territories- NCCts).
Why did this happen even though Indonesia had
already enacted the first Money Laundering Law in
2002, which means that it has had 20 years of legal
rules related to money laundering. In simple terms,
Indonesia has not been able to fulfill various
requirements to become a member of the FATF so
that is why Indonesia is included in the list of
countries that are considered uncooperative (Non-
Cooperative and Territories-NCCts (Hiariej,
2006:115).
This encourages this article to want to see and
describe the state of the laws and regulations of the
Republic of Indonesia regarding money laundering,
including various supporting regulations regarding
other finances. The effectiveness of the existing and
applicable legal rules will be reflected by using the
theory of legal effectiveness according to Lawrence
M. Friedman. According to Lawrence Friedman
(1984:19-23) the effectiveness of law in a country
can be seen by applying 3 things, namely: legal
structure, legal substance and legal culture.
Therefore, if we want to see how effective the legal
regulations regarding the prevention and eradication
of laundering in Indonesia are, this article will start
by looking at the three things that Friedman refers to
as legal effectiveness.
2.4 Money Laundering According to
Criminal Law Perspective
Money laundering as an extra-ordinary crime must
also be handled in an extraordinary manner, so that
countries in the world are required to establish and
enforce a strict money laundering regime which in
the perspective of criminal law means that the
criminal threat to the perpetrators of the crime of
money laundering is higher than the threat of other
common crimes. In this case, there is a debate as to
the importance of imprisonment, whether it is
important that the perpetrators of criminal acts
should be imprisoned or not (Rustandi, 1992:79).
The opinion that says there is a need for
imprisonment, for example, is said by Herbert L.
Packer (1968:19), “…punishment is the sanction.
Crime without punishment, or at least the threat of
punishment, may be impractical, but it is not
illogical…” this is in line with Beccaria's thought as
quoted by John Henry Merryman (1985:124), that
“Only the laws can determine the punishment of
crimes…crimes and punishments can be established
only by law, and by law he means statute.” On that
basis, this article cites Friedman (184:170) who said,
"we are used to thinking of prison or jail as the basic
punishment for serious crime," as regulated in the
criminal law on prevention and eradication of money
laundering.
The opposite reflection came from the thoughts
of Muladi and Barda Nawawi Arief (1984:166) who
wrote, "...if it is not appropriate and useful for the
community, then imprisonment does not need to be
implemented." This thinking is in line with the
utilitarian’s described by C.L Ten (1995:367). For
utilitarianism, suffering (punishment) can only be
justified to the extent necessary to prevent greater
suffering.
From another point of view, Tonry (….:6) in the
chapter ‘Has the Prison a Future?” looking at it
from an economic perspective, he said, “Prisoners,
and their families, and the rest of us, will benefit if
prisons and related institutions can prevent crime
more effectively at lower human and economic
cost.” The suffering of punishment is necessary to
prevent further crime and at the same time to ensure
the common good. Sentencing does not necessarily
mean imprisonment, because according to Susan
Easton and Piper's explanation (………), “there is
also punishment without imprisonment in the sense
that punishment is not imprisonment, for example
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paying a fine.” This is the reason why Tonry
(………) further said, “...prisons and imprisonment,
and our expectations of them, will change as they
have before. Cultural norms and social attitudes
change, and political issues go in and out of
fashion…”.
The community is faced with difficult choices,
continues to be under the shadow of positivism or
another name is legal centralism ensuring the
imprisonment of people who are proven to have
committed a crime.
3 METHODS
This article is based on a doctrinal legal research,
using available data from various sources, namely
various mass media reports and provisions of the
money laundering law in Indonesia (excluding court
decisions on money laundering cases). The data
collected will be further analyzed using legal
effectiveness theory proposed by Lawrence M.
Friedman which also supported by the thoughts of
other criminal law experts including Indonesian Law
Number 10 Year 2008 concerning the eradication of
money laundering.
Therefore, it is hoped that the analysis carried
out in this article will arrive at the answers to the
two research questions that have been described in
the earlier part of the introduction above.
4 RESULT AND DISCUSSION
4.1 The Role of the G20 Summit Year
2022 in Preventing and Eradicating
Money Laundering
Money laundering with all its modes has existed
long before the forum of the countries that are
members of the G20 was formed. Almost certainly
all countries in the world recognize that money
laundering is a crime that is classified as an extra-
ordinary crime because it greatly affects the
economy of a country. For this reason, various
international institutions, particularly the Financial
Action Task Force (FATF), the International
Monetary Fund (IMF) and the World Bank, and
other multilateral organizations, lead efforts in
developing measures to fight money laundering.
(algovernanceproject.org). Even Dennish Rudich
(reporter) said that Words associated with anti-
money laundering have been referenced at the G20
Summit more than 8,500 times for an average of 5%
per summit. More than 100 paragraphs have been
dedicated to these issues, appearing in 25
documents.
Therefore, it is not wrong if according to the
FATF report dated April 7, 2021 (https://www.fatf-
gafi.org that G20 Finance Ministers and Central
Bank Governors today confirmed their commitment
to tacking all sources, techniques and channels of
money laundering and the financing of terrorism and
proliferation. FATF President Dr. Marcus Pleyer
highlighted the importance of risk-based supervision
to effectively detect and prevent financial crimes
that undermine global economies and hinder
economic recovery.
The countries that are members of the G20 which
were formed in 2008 and started with the first G20
Summit in Washington, United States, in addition to
aiming to improve the economy among member
countries, one of the agendas of the working group
is also to discuss the prevention and eradication of
money laundering. This has been going on from year
to year until next coming 2022 G20 Summit in Bali-
Indonesia.
Based on the observations of this article by
reading and analyzing data from various media
(Detikfinance/Business economic news), basically
the formation or establishment of the G20 carried
out by 19 countries including the European Union
and the International Monetary Fund and the World
Bank. It is known that the real roles that have been
achieved by the members of the G20 are known
among others:
1. the G20 played a significant role in supporting
overcoming the global financial crisis in 2008;
2. The G20 changed global financial governance
by initiating coordinated fiscal and monetary
stimulus packages on a very large scale;
3. The G20 encourages increased lending
capacity of the IMF, as well as various major
development banks;
4. The G20 is credited with helping the world get
back on track for growth as well as pushing
for some important financial reforms.
5. In addition to the roles above, in relation with
Indonesia, the G20 Summit 2022 also has
other roles related to economic development
and progress, which the Indonesian
Corruption Commission (KPK) has in line
with efforts to prevent and eradicate money
laundering so as stated by the Institute of
Chartered Accountants in England and Wales
(ICAEW) that assessing the G20 can be a
good momentum in encouraging efforts to
The Role of 2022 G20 Summit in the Context of Preventing and Eradicating Money Laundering: Indonesian Perspective
103
prevent money laundering and terrorism
financing.
6. The fresh one role of international legal
structure in combating money laundering is
that the meeting (before G20 Summit in
November, 2022) held in September 28, 2022
which discussed countermeasures against
money laundering and terrorism financing.
Almost all international legal structure related
to money laundering, FATF, WB, IMF,
ICAEW including B20 (is an outreach group
from G20) that represent the international
business community are attended the meeting.
The next analysis at the end of this sub-chapter is
a reflection of the role of some legal aspects related
to legal effectiveness theory proposed by Lawrence
M. Friedman are as follows:
4.1.1 The Role of International Legal
Structure
From the legal structure point of view, the
international institution specifically formed to deal
with money laundering is the Financial Action Task
Force (FATF) which in practice combats money
laundering works closely with the International
Monetary Fund (IMF) and the World Bank
(Sjahdeni, 2007, Juwana, 2008). This institution has
worked well in issuing what are called 40
recommendations, namely recommendations that
must be followed by FATF member countries in the
context of cooperation in preventing and eradicating
money laundering. From various sources it is said
that until now Indonesia cannot be considered and
officially as a member of the FATF because it has
not been able to fulfill several of the requirements
referred to in the recommendation, such as
recommendation no. 15.
According to the relevant official (FATF: 2022),
(https://www.fatf-gafi.org/publications/fatfrecommen
dations/documents/fatf-recommendations.html) the
FATF Recommendations set out a comprehensive
and consistent framework of measures which
countries should implement in order to combat
money laundering and terrorist financing (Weling,
1992:204), as well as the financing of the
proliferation of weapons of mass destruction. On that
basis, The FATF Recommendations, therefore, set an
international standard, which countries should
implement through measures adapted to their
particular circumstances. Over the past twenty years
the FATF has developed, used and refined rigorous
compliance mechanisms to help ensure global
compliance with its Standards. It assesses compliance
through a stringent country evaluation and
monitoring process which is referred to as the new
methodology.
The new Methodology will provide the basis for
an integrated analysis of the extent to which a
country is compliant with the FATF Standards and
the level of effectiveness of its AML/CFT system. In
2022, the FATF has issued a new amendment related
to recommendations that are considered by various
parties to be more cooperative and less burdensome
for G20 member countries to become members of
the FATF.
Nevertheless, FATF acknowledges that
Countries have diverse legal, administrative and
operational frameworks and different financial
systems, and so cannot take all identical measures to
counter these threats. These are facts that exist in
each FATF Member State which is one of the
difficulties in achieving maximum results in the
eradication of money laundering. This situation also
can be happened with the members of G20. The role
of each international legal structure is highly
appreciated in this case.
The descriptions above confirm that the
international legal structure (such as: member
countries of G20, FATF, IMF, World Bank) has
worked and did their role from time to time in a high
attention in the context of preventing and eradicating
money laundering.
4.1.2 The Role of International Legal
Substance
Following Friedman's thinking, various regulations
issued by the FATF and other international
institutions related to money laundering are legal
substance. Therefore, according to the
recommendations that have been issued by the
FATF, both recommendations 40+8 and
recommendations 40+9 including the new
methodology issued by the FATF in order to achieve
maximum results in handling money laundering, it
can be said that the FATF has made and enforced
various international rules that must be followed
adhered to by both the G20 member countries and
other FATF member countries and/or countries
outside the FATF. According to data, FATF even
always updates and approaches countries that are
considered unable to meet international standards for
handling money laundering, namely a list called
Non-Cooperative Countries (NCCTs). Indonesia is
still listed as a non-cooperative country so it is
hoped that the 2022 G20 Summit in Bali will have a
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major impact on Indonesia's status in terms of
handling money laundering.
4.1.3 The Role of International Legal
Culture
International legal culture can be seen from how
countries in the world unite through the cooperation
of various institutions to combat economic crimes in
this case money laundering. It is this shared
awareness that encourages the existence of various
common habits on how to deal with cross-border
economic crimes. Almost the entire world
community recognizes that economic crimes such as
money laundering is very influential on the progress
and improvement of a country's economy.
The economic crimes mentioned above
indirectly disrupt the economic stability of a
country, which on a micro level will also affect the
per capita income of each country. The final part of
economic crime is the creation of difficulties and
prolonged economic crises, especially for
developing countries and poor countries. On the
awareness of the magnitude of the impact of
economic crime, countries in the world are expected
to increase public awareness not to be involved and
not related to money laundering crimes, so that the
country's economy is more secure.
Following Friedman's theory of legal
effectiveness (1984:19-24), this article concludes
that the roles that have been carried out by
international institutions including the 40 FATF
recommendations and other international
conventions as well as international legal culture
have shown good results in the prevention and
eradication of money laundering.
4.2 Indonesia's Efforts to Increase the
Eradication of Money Laundering
Simple research in the context of writing this article
believes that there are certain rules and requirements
that Indonesia has not been able to fulfill regarding
the 40 recommendations set by the FATF so that
until now Indonesia is still listed as a non-
cooperative country in the perspective of money
laundering prevention and prosecution.
On that basis, the following analysis will remain
the same based on various information from mass
media reports and literature studies use Friedman's
theory of legal effectiveness which has been used in
analyzing the first research question in sub-chapter
4.1 above.
4.2.1 Efforts to Increase the Effectiveness of
Legal Structure
In improving the effectiveness of the work of
institutions that are included in the terminology of
the legal structure according to Friedman (1984:19)
namely the Police as investigators, the Prosecutor's
Office as prosecutors and the Court as examiners
and deciders of money laundering criminal cases.
The law enforcement agency is the spearhead of all
efforts to prevent and eradicate money laundering in
Indonesia. If the way of working and the
effectiveness of the work of these institutions are not
optimal, it will certainly affect the obedience of
citizens to the laws of money laundering.
Meanwhile, law enforcement agencies such as the
police and prosecutors have been under the spotlight
for their disproportionate and even unprofessional
work effectiveness. This will directly affect the
increase in the prevalence of money laundering
crimes, especially if you follow the rules of Law no.
8 of 2010 concerning money laundering, there are
many, namely more than 30 types of crime that can
be considered as a predicate crime of money
laundering. So that from a normative juridical
perspective, there is a great chance that a general
crime will be categorized as a money laundering
crime (Atmasasmita, 2007). This is of course in
accordance with what is regulated in the provisions
of Articles 2 and 3 of the Indonesian money
laundering law and is also in line with the definition
of money laundering referred to by the FATF and
the thoughts of academic Weling. In addition, the
role of companies and lawyers is also important
regarding the effectiveness of the legal structure.
The report (Antaranews, September 12 and March
31, 2022) said ICAEW Indonesia would encourage
the supervision of companies to be more compliant
with regulations. In addition, the Indonesian
Corruption Eradication Commission (KPK) official
stated that this encouragement (to prevent money
laundering) came from the fact that advocated and
lawyers oftentimes facilitated the process by aiding
corrupters by partaking in money laundering.
In addition, there is a need to improve the
performance of the cooperation between the three
institutions (police. Prosecutor dan judge) and the
PPATK (Center for Financial Transaction Reports
and Analysis) and Bank Indonesia, which oversees
all Indonesian banks to anticipate all circumstances
that lead to the occurrence and increase of money
laundering crimes in Indonesia.
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4.2.2 Efforts to Increase the Effectiveness of
the Legal Substance
Furthermore, representative from the KPK expects
that the compendium can produce comprehensive
regulations, so that legal professionals have a better
role to play in preventing graft and money
laundering. In a webinar held by the Financial
Services Authority on 23 February 2022, Mahfud
MD, the Coordinating Minister for Political, Legal
and Security Affairs of the Republic of Indonesia
revealed that Indonesia is the only G20 country that
has not joined the Financial Action Task Force
(FATF) anti-money laundering organization because
Indonesia is considered to have not completed all
recommendations of the organization. FATF MER
can only be achieved by increasing Indonesia's
compliance with FATF recommendations covering
various fields in anti-money laundering and
prevention of terrorism financing (APU PPT)
programs. Indonesia is expected to comply with the
matters included in immediate outcomes 3 and
recommendation number 15 FATF.
In addition to various recommendations issued
by the FATF and various international cooperation
documents between G20 member countries and
FATF members, according to this article, what also
needs to be improved is the existence of a tual Legal
Assistance (MLA) which allows a country to request
assistance from other countries in order to download
evidences and freezing of assets including the arrest
of money laundering suspects.
4.2.3 Efforts to Increase the Effectiveness of
the Legal Culture
In addition to increasing public awareness in order
to avoid money laundering through various technical
guidance from related institutions, it is hoped that
the legal culture of the community and state
apparatus (ASN) including private companies that
are closely related to money laundering (private
banks and money exchange companies/services) -
money changer) can be increased in connection with
the 2022 G20 Summit in Bali-Indonesia. The theme
of the 2022 G20 Indonesia Presidency, namely
“Recover Together, Recover Stronger”, is very
appropriate to build a community culture that can
avoid all kinds of actions that lead to money
laundering crimes. Through this theme, Indonesia
wants to invite the whole world to work hand in
hand to support each other to recover together and
grow stronger and more sustainable.
This article sees that there is great hope for the
legal culture of the Indonesian people to be more
advanced and leave the bad behavior of money
laundering with all its modes, especially when it is
compared with the benefits that Indonesia can
achieve as the G20 Presidency, including: The G20
presidency in the midst of a pandemic has proven a
good perception of Indonesia's economic resilience
to the crisis. -is a form of acknowledgment of
Indonesia's status as one of the countries with the
largest economy in the world which can also
represent other developing countries; The benefits in
the description above indirectly affect people's
thoughts and feelings to pride themselves that
Indonesia as a great nation has come the time to be
included in the calculation of the world economy.
The real implication of increasing Indonesia's
confidence is that it is highly likely that Indonesia
will be able to fulfill all the requirements set by the
FATF so that in the end Indonesia can be listed as a
member of the FATF which shows that Indonesia
has gone far ahead in preventing and eradicating the
crime of money laundering. This can also be seen
from the efforts of several ministries that used the
opportunity of the G20 Summit Indonesia 2022 in
Bali to improve the national economy, including
increasing all efforts to prevent and eradicate money
laundering in institutional sector.
(https://finance.detik.com) RI is the only G20
country that has not entered the Anti-Money
Laundering Organization.
Even ICAEW-Institute of Chartered Accountants
of England and Wales (ANTARANTB, 12
September 2022) sees that the momentum of
Indonesia's G20/B20 in 2022 is an ideal time for the
government to agree on concrete actions against
economic crimes and the parties involved in them.
Indonesia started preparations for the 2022 G20
Summit with a breakthrough in holding an Integrity
and Compliance Task Force Conference with the
title Fostering Agility to Combat Money Laundering
and Economic Crime including several other equally
important sessions held on 28 September 2022.
Likewise with the G20 Anti-Corruption working
Group (ACWG) discussed the frameworks of
regulation of legal professions in money laundering.
Mungi Hadipratikno, Indonesian Corruption
eradication Commission's (KPK) asset tracking,
evidence management, and execution Director, who
represented the Indonesian presidency proposed that
reviews of regulations and good practices should be
included in the G20 ACWG compendium. G20
ACWG compendium is needed for reviews on
regulation and supervisions on gatekeepers,
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especially legal professionals. It will also show good
practices from G20 member states,” Mungki said.
(g20.org March 31 2022).
Based on the various descriptions in sub-chapters
4 (4.1 and 4.2), with reflection to the legal
effectiveness proposed by Friedman, this article
finally concludes that the role of various
international institutions including various
international rules and international legal culture,
especially with the 2022 G20 Summit in Bali in
November, has indirectly enabled Indonesia to
increase efforts to prevent and eradicate money
laundering.
5 CONCLUSION
Based on the descriptions above, the conclusions
that can be drawn are:
The role of the G20 Summit since its inception in
2008 until now has played an active role not only in
improving economic relations among G20 member
countries but also playing an active role in
encouraging and increasing the prevention and
eradication of money laundering with various
international cooperation mechanisms, especially
among G20 member countries. Together with the
FATF, IMF and World Bank institutions. The role of
the G20 is mainly to support the movement to
combat money laundering simultaneously by
increasing the effectiveness of legal structures
(FATF, IMF, WB and other multilateral cooperation
institutions), legal substance (40 recommendations)
and legal culture, namely relations and mutual
assistance between countries. G20 members and
FATF members.
Indonesia's efforts in the context of preventing
and eradicating money laundering by increasing the
effectiveness of the legal structure (Police,
Prosecutors and Judges), the effectiveness and
enforcement of stricter legal rules (legal substance)
and increasing legal awareness of the Indonesian
people so that they are not related and involved in
money laundering crimes. Although these efforts
have not been maximized, therefore Indonesia has
not been able to become a member of the FATF and
is still registered as a non-cooperative country, but
this article believes that the 2022 G20 Summit in
Bali will have a much greater impact on Indonesia to
combat money laundering and economic crimes.
other. At the end, this article concludes that the
readiness and awareness of the Government and the
entire Indonesian people with the motto "Recover
together, recover Stronger", Indonesia will be able
to reach the maximum level in dealing with money
laundering and subsequently managing higher
economic growth.
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