Strategic analysis of green finance crime to strengthen green economy in emerging markets

Download This Article

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

Abstract

Green finance crime is money laundering stemming from illegal environmental destruction activities. Indonesia is experiencing this problem, where the number of forest clearing, plantations, and mining is increasing, but the results are not enjoyed by the surrounding community, and only enjoyed by a few people and corporations through illegal mechanisms. Ordinary legal mechanisms have not been able to prevent and crack down on green finance crimes in Indonesia. This study aims to analyze green finance crimes in order to optimize green economy transformation in Indonesia. This study used the juridical-normative method. The purpose of this study is to determine the risk mitigation measures for green financial crime in Indonesia. The result of this study is that the problem faced by Indonesia is that it does not understand environmental crime as a criminal act originating from money laundering so the instruments used to overcome this crime are still conventional. Coupled with the ever-evolving, various modes of washing are complex and involve different legal systems in different countries. This makes green finance crime difficult to eradicate with ordinary legal instruments. Thus, the authors propose mitigating legal risks through joint investigations covering multiple devices, multiple institutions, multiple laws and regulations, and multiple sanctions to overcome this.

Keywords: Financial Crime, Green Crime, Green Economy, Green Finance Crime, Money Laundering

Authors’ individual contribution: Conceptualization — S.; Methodology — I.D.Q. and N.A.R.; Formal Analysis — S., I.D.Q., and N.A.R.; Writing — Original Draft — S. and I.D.Q.; Supervision — S. and I.D.Q.

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

JEL Classification: K230, K320, K420

Received: 09.03.2023
Accepted: 13.05.2024
Published online: 17.05.2024

How to cite this paper: Sihabudin, Qurbani, I. D., & Rahma, N. A. (2024). Strategic analysis of green finance crime to strengthen green economy in emerging markets. Corporate Law & Governance Review, 6(2), 32–41. https://doi.org/10.22495/clgrv6i2p3