Implementation of Follow the Money in Eradicating Corruption and Money Laundering

Abstract

This study aims to identify and analyze the implementation of follow the money in eradicating corruption and money laundering in order to recover state financial losses. This research is normative research, this research was carried out by examining library materials in the form of primary, secondary, and tertiary legal materials, with an empirical-analytical approach, which uses concrete cases to become research objects, and uses relevant theories. The follow the money policy in eradicating corruption and money laundering in Indonesia has not been effective enough in returning assets that have been confiscated and has resulted in losses to state finances. Therefore, it is necessary to strengthen the system for returning assets resulting from acts of corruption with the Asset Recovery Bill, increasing FINTRAC capacity, strengthening asset confiscation, and cooperation between countries to track assets resulting from crimes abroad and maximize returns through Mutual Legal Assistance. The future policy direction is to strengthen the system for recovering assets and confiscating assets through conviction-based forfeiture and non-conviction-based forfeiture, as well as civil lawsuits. In the Indonesian legal system, the follow the money policy is very important to overcome corruption and money laundering. However, the return on assets is still not optimal. Therefore, the Bill on Asset Recovery and the Bill on Cash Payments as well as the application of Articles 18 and 37 of the Corruption Law are needed to confiscate the proceeds of crime through criminal compensation