Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


Adopting the Financial Action Task Force (Fatf) Recommendations in Realizing Beneficial Owners Transparency in Limited Companies to Prevent Money Laundering Criminal Acts in Indonesia

Author(s): Jamin Ginting, Adessya Thalia Chairunissa

The Government is promoting transparency on the Beneficiary of Limited Liability Companies in Indonesia in preventing and eradicating money laundering and terrorism financing. This is done to prevent and eradicate Limited Liability Companies as a tool used to carry out money laundering activities. The non-exposure of the Beneficiary is used to take action that fulfills all elements of money laundering. Prevention and eradication are carried out by issuing regulations that require transparency of the identity of the Beneficiary, namely Presidential Regulation Number 13 of 2018, which was born based on the recommendation of the 24th Financial Action Task Force (FATF), Transparency and Beneficiary of Legal Entities. However, the implementation in Indonesia is not directly proportional to the regulations that have been issued because there are still universities that do not follow the rules. In addition, Indonesia, whose current position is only an observer country, is obliged to adopt all recommendations issued by the FATF into the legal system in Indonesia as a step to become a member of the FATF and then be assessed annually with an assessment rating given by the FATF.

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