09
Legal Framework in Indonesia
In Indonesia, Anti-Money Laundering is governed by
Law 8 of 2010 on the Countermeasure and Eradication
of Money Laundering (Law 8 of 2010).
Corporate Criminal Liability concerning Money
Laundering
According to Article 6 of Law 8 of 2010, a corporation
is subject to criminal liability, if it commits the criminal
offence of money laundering as stipulated in Article 3, 4
and 5 of Law of 2010 and if this criminal offence
• is committed or ordered by anyone who possesses
the power and authority to determine the
corporation’s policy or the authority to implement
the corporation’s policy in question without
requiring authorization from their superior;
• is committed within the framework of the objectives
and purposes of the corporation;
• is committed in accordance with the function of the
perpetrator or the person who gave the order; or
• is committed to derive benefits for the corporation.
A criminal offence includes for example
• placing, transferring, forwarding, spending,
paying, granting, depositing or taking abroad
the assets which are recognized or reasonably
alleged as the result of criminal action like, among
others, corruption, labor smuggling, fraud and
embezzlement, with the purpose of hiding or
disguising the origin of the assets;
• hiding or disguising the origin, source, location,
purpose, transfer of right or the truly ownership
of the assets which are recognized or reasonably
alleged as the result of criminal action like, among
others, corruption, labor smuggling, fraud and
embezzlement;
• accepting or taking the control on placement,
transfer, payment, grant, deposit of the assets which
are recognized or reasonably alleged as the result of
the criminal action like, among others, corruption,
labor smuggling, fraud and embezzlement, except
one is a party with reporting obligations and fulfills
these obligations (see below under item 3).
According to Article 7 of Law 8 of 2010, the primary
sentence imposed on the corporation shall be a fine of
no more than IDR 100.000.000.000,00. In addition to
the fine, the corporation may also be sentenced with:
• announcement of the judge’s verdict;
• suspension of the whole or partial business activity
of the corporation;
• revocation of the business license;
• dissolution or restriction of the corporation;
• confiscation of the corporation’s assets for the state;
and/ or
• takeover of the corporation by the state.
Parties with Reporting Obligation
According to Article 17 (1) of Law 8 of 2010, parties
with reporting obligation are financial service providers
and provider of goods and services. The financial
service providers include, among others, banks, finance
companies, insurance companies and insurance
broker companies, financial institution pension funds,
securities companies, investment manager, custodians,
trustees and postal services as the current account
service provider. Providers of goods and services
include, among others, property companies, motor
vehicle dealers, art and antique dealers.
The financial service providers are obliged to report
any suspicious financial transaction, any cash financial
transaction equal or higher than IDR 500 million or the
equal amount in a foreign currency, which is made in
single-time transaction or in several-time transactions
within one working day as well as any fund transfer
financial transaction from abroad to the Financial
Transaction Report and Analysis Center.This obligation
does not apply to financial transaction between financial
service providers, transaction for payment of salary
and pension as well as other transactions specifically
stipulated by the chairman of Financial Transaction
Report and Analysis Center (Article 23 of Law 8 of
2010).
The goods and/or service providers are obliged to
report any transaction that is performed by the user
with a value equal or higher than IDR 500,000,000.00 or
the equal amount in a foreign currency to the Financial
Transaction Report and Analysis Center (Article 27 of
Law 8 of 2010).
According to Article 12 of Law 8 of 2010, directors,
commissioners, officials, and the employee’s of the party
with reporting obligation are prohibited to inform
service users or the other parties, either directly or
indirectly, of the suspicious financial transaction report
that is being prepared or has been submitted to the
Financial Transaction Report and Analysis Center.
Anti-Money Laundering
