Beneficial ownership transparency strategy in law enforcement of the money laundering act involving corporations

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Corporations play an important role in economic growth and national development. The corporation has the potential to become a means to commit criminal acts of money laundering with the aim of benefiting (beneficial owner). The distribution of beneficial owner information is an effort to realize corporate sustainability. Consistency of beneficial ownership transparency is needed to ensure law enforcement of money laundering crimes involving corporations. The purpose of this study is to find the role of beneficial owners in the misuse of corporations as a mediator for money laundering crimes in Indonesia. This research method uses a normative juridical approach that focuses on data collection techniques, descriptive, and analytical, with literature studies and field studies being the research stage, then the data is analyzed qualitatively. The results of the analysis show that transparency of beneficial owner information is part of the framework of the principles of prevention and eradication of money laundering. Transparency of beneficial owner information can ensure the implementation of practices and concept development that is used as a means of orientation in the prevention and eradication of money laundering crimes involving corporations.

Keywords: Beneficial Ownership, Information Transparency, Money Laundering Crime, Indonesia

Authors’ individual contribution: Conceptualization — L.A. and I.F.; Investigation — L.A.; Resources — L.A. and I.F.; Writing — I.F., F.R., and G.N.F.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: K1, K2, K4

Received: 04.12.2022
Accepted: 18.08.2023
Published online: 22.08.2023

How to cite this paper: Agustino, L., Fitriani, I., Reyta, F., & Fajar, G. N. (2023). Beneficial ownership transparency strategy in law enforcement of the money laundering act involving corporations. Corporate & Business Strategy Review, 4(3), 148–158. https://doi.org/10.22495/cbsrv4i3art15