THE BANKING INDUSTRY'S ROLE IN SUPPRESSING THE CRIME OF MONEY LAUNDERING

  • Auliah Andika Rukman

Abstract

The banking industry is an main target and can easily be used as a source of dirty money
placement in the process of money laundering. Therefore the role of the Banking Industry as the
Finance Service Provider is very important to prevent the entry of the proceeds of crime into the
financial system. The banking industry is required to always be able to apply standard
procedures for prevention of early of the crime of money laundering. One prevention procedure
standards Bank is required to apply the principle of KYC (know Your customer) in which the
bank must know their costumers, supervise custumers and the origin of funds the customers, if
later found indications of funds deviating from the customer's profile or categorized as a
transaction suspicious according to the regulations, the bank is required to report the transaction
as soon as possible to PPATK ( reporting center and analysis of financial transactions ). Banks
that have been accidentally or negligent to report indications of illicit transactions classified as
suspicious transactions under the law regulations, then banks can be considered to be involved
in money laundering activities as stipulated in Law No. 8 year 2010 about money laundering.

Published
Feb 4, 2017
How to Cite
RUKMAN, Auliah Andika. THE BANKING INDUSTRY'S ROLE IN SUPPRESSING THE CRIME OF MONEY LAUNDERING. CLAVIA, [S.l.], v. 16, n. 2, p. 1-12, feb. 2017. ISSN 2477-6009. Available at: <http://clavia.unibos.id/index.php/clavia/article/view/7>. Date accessed: 19 dec. 2018.