Money laundering: definition, steps, examples

Have you ever heard the word money laundering or money laundering? even called money laundering. But that doesn’t mean this exchanger is washed with washing machine and detergent. Okay! money laundering activities or money laundering It is a crime that may be a threat to the country and the country.

Check out the full review of this crime in the following articles:

Definition of Money Laundering

Money laundering is an attempt to disguise funds derived from illegal transactions using legal transactions. The purpose of money laundering is to conceal the source of the assets. to prevent law enforcement from detecting

Money laundering was first known in the 1920s when the Mafia in the United States used robberies, theft, and drug sales to open local laundries. He came from setting up a laundromat rather than from illegal activities.

in Indonesia This transaction is regulated by Law No. 8, 2010 on Anti-Money Laundering Crimes (PPTPPU). In sections 3-5 of the law, these offenders are liable to 5- imprisonment. 20 years with a fine of about 1 billion to 10 billion rupiah

Why do people launder money?

People who commit money laundering crimes often get their money from unauthorized (illegal) sources. These prohibited sources range from buying and selling drugs. income from fraud to the management of the company’s account book Therefore, this crime is not only committed by the middle class. but also to the rich who want to multiply themselves.

The amount of money involved in this crime is usually huge. Therefore, it would make officials wonder who the money belongs to. As a result, those committing money laundering divide the money they have and use it for legal business to look legitimate and legitimate.

Why is money laundering prohibited?

Money laundering is banned in countries around the world as it threatens the economic stability and integrity of the country’s financial system. and threatens the foundations of people’s lives. Money laundering is also prohibited due to the potential for financial crime or terrorism using funds from this source.

For example, to finance his project. Terrorist A sells marijuana abroad. so that the government does not suspect Some of the money from the sale and purchase of marijuana is therefore directed to a cooperative whose members are all terrorists. The money from the sale of marijuana is then distributed to members under the pretext of improving their business. Although the money was used to buy materials and build the bombs.

This danger makes money laundering transactions prohibited. Not only for transactions money laundering The elite is often associated with tax evasion (tax evasion), thus reducing the income potential of the country as well.

Procedures of money laundering

Theoretically, the crime of money laundering proceeds in the following 3 steps:

1. Alignment procedure

At this stage, the funds from the ML are divided into smaller amounts to be included in the legal financial system. This step can be done by mixing legitimate and illegal business income to be remitted overseas. The aim is to avoid suspicion from banks or governments.

For example, Criminal A has illegal money worth 10 billion rupiah. to avoid suspicions from the authorities The money was therefore divided into 100 small chunks worth Rp 100,000,000 each. restaurant development land purchase Deposits and demand deposits, buying stocks, buying bitcoins and exchanging them for dollars.

2. Stratification process

At this stage, illegal money transactions are concealed by accounting techniques and other legal transactions. As a result, the value of illicit money appears vague and difficult to verify.

Such as the allocation of 100 million specifically for the above restaurant development. Rather than capitalizing on additional contributions from owners The restaurant manager can ask his staff to save money as a way to increase sales. as proof They can forge customer order receipts.

3. Integration step

At this stage, it is difficult to distinguish between illicit money generated by illegal actions and halal money generated by legal action. As a result, criminals can use the “laundered” money to commit crimes as they please.

For example, criminal A who is successful in the restaurant business can use the money from the restaurant to bribe officials or expand the marijuana plantation he owns, for example. It “looks legitimate,” so it’s difficult for authorities to detect.

Although the procedure is simple but in practice Money laundering crimes do not always follow these steps. Especially now that crypto assets such as Bitcoin and Metaverse are not overseen by the government. The existence of these crypto assets allows criminals to collect money in various ways. digital currency use market exchange from abroad, making it difficult for officials to inspect

Examples of money laundering cases

Example 1

One of the money laundering cases that have stirred up excitement in Indonesia is the money laundering crimes committed by Nazaruddin, a former DPR member and Democratic Party treasurer, between 2009 and 2014.

At the time, Nazaruddin was charged with accepting bribes from various real estate firms such as PT Duta Graha Indah (DGI), PT Nindya Karya, PT Waskita Karya, PT Adhi Karya and other real estate firms to speed up the project. The value of bribes is expected to reach several tens of thousands to hundreds of millions of rupiah.

The money was then “hidden” by Nazarudin in the accounts of various companies. that he owns and accounts belonging to his family and employees. Nazaruddin’s actions came to light when the KPK proceeded to arrest his agent Mindo Rosalina Manulang and several others. For this and many previous cases Nazaruddin was sentenced to 13 years in prison.

Example 2

Another example of an offshore money laundering crime is the Nth Room case, which has made headlines in cyberspace in recent years. In contrast to the Nazaruddin case above, how does money laundering work in this case? cryptocurrency as a payment method

In this case, Cho Ju-bin, or Baksabang, first offered the girl a part-time job via Twitter. The Baksabang then forced the girl to take pictures of herself in inappropriate poses and clothing. The results of the shooting were sold by Baksabang to tens of thousands of people who were members of the “Doctor’s Room” telegram account.

To be a member of this room These people have to pay with digital currency. due to the use of these cryptographic assets Both users and footprints of Baksabang are difficult to verify. The crypto-currency is being adopted by the people of Baksabang bit by bit systematically.

As a result of this case, 103 young girls were victimized, 3757 including Baksabang members and their subordinates were arrested. Baksabang himself was sentenced to 42 years in prison for the crime.

How to prevent money laundering

It must not only be run by the government. Prevention of money laundering crimes also requires the participation of the general public. The reason is that ordinary people who do not know anything are at risk of inadvertently getting involved in the relevant practices. Here are some ways to prevent money laundering for both communities and governments:

1. Limited amount of cash transactions

The first is to limit cash transactions. This is because offline transactions using cash tend to be more difficult to track than those using credit or debit cards.

If you transact using a debit or credit card Banks can also track where you transact and who you are. It’s different if you transfer by depositing cash with the employee. Therefore transactions specified in cash must be restricted.

2. Applying the Know Your Customer (KYC) principle

Another reason many criminals take their cash and divide it into smaller amounts. It is because banks use KYC system that banks cannot accept certain transactions without NPWP and ID.

Not only the bank Some industries still don’t allow people to buy without NPWP etc. buy a new car or a new home

3. Tighten crypto asset regulations

Besides being able to be used to obtain illicit funds such as the nth room above, cryptocurrencies can also be a tool for certain parties to evade taxes. It is therefore important for incumbents to provide strict regulations for this new investment instrument.

4. Reject unknown money or property.

for general public The steps that must be taken to avoid money laundering practices are the denial of money or property of unknown origin. This is especially true if large amounts of money and property have been provided. because if you are caught accepting money or property It’s not impossible for you to be mistaken for an eyewitness to the crime involved, even if you don’t know anything about it.