LAW ENFORCEMENT OF MONEY LAUNDERING IN BANKING

Abstract

This study aims to identify the mechanism of money laundering in banking institutions in Indonesia. This type of research is a legal research of the juridical-sociological approach. The location of the study was conducted at several banks including Bank Niaga, Bank Cental Bank Asia and Bank Indonesia (BI) in Makassar City. Legal materials used to solve problems as formulated in this legal research are sourced from primary, secondary and tertiary legal materials. Data obtained through data collection in the form of interviews and literature study. The data obtained both primary and secondary data, were analyzed qualitatively. The results showed that the mechanism of eradicating money laundering at banking institutions in Indonesia has been regulated by UndangUndang Nomor 8 Tahun 2010 concerning Prevention and Eradication of Money Laundering. Money laundering regulations are considered effective in anticipating and eradicating money laundering by tracking the flow of funds in banking institutions related to disclosure of crimes seized at the same time also criminalizing anyone who receives a flow of crime. This authority is exercised by the PPATK (Financial Transaction Reports and Analysis Center), which has the task of preventing and combating money laundering. Index Terms – crime, money laundering, banking and PPATK