Regulatory Functions and Institutions in Efforts to Prevent Money Laundering

A Review of Legal Literature in Indonesia

Abstract

Money laundering is a form of economic crime that has a serious impact on financial stability, the integrity of financial institutions and public trust. In Indonesia, the complexity of this crime is exacerbated by weak inter-institutional coordination and limited human resources. This study aims to evaluate the effectiveness of regulations and institutional roles in preventing and combating money laundering crimes. The method used is a literature study with a qualitative approach, by analyzing secondary data from journals, laws and regulations, and reports of related institutions. The results show that although Indonesia has an adequate legal framework, such as Law No. 8/2010, its implementation still faces challenges, including lack of coordination, weak reporting systems, and limitations in international cooperation. In conclusion, strengthening inter-agency synergies, utilizing technology, and increasing the capacity of law enforcement officers are essential to improve the effectiveness of preventing and combating money laundering in Indonesia.