“Where do you hide your money?”: The explanation of low conviction in money laundering

Abstract

The low conviction rate for money laundering, particularly in corruption cases, stems from the technical language of the ML law and the challenges of proving mens rea for ML perpetrators. This paper examines Indonesian corruption cases from 2017 to 2021 and finds that the conviction rate for ML is below 50 %, despite improvements in Indonesia's anti-money laundering framework since 2002. These findings provide evidence of broader global difficulties in prosecuting money laundering despite almost universal criminalization and advancements in anti-money laundering systems. Ultimately, the paper highlights that the inability of the criminal justice system to prosecute money laundering effectively undermines its deterrent effect, necessitating a re-evaluation of legal frameworks and evidentiary requirements.