Stock market is flourishing everywhere around the world, including Indonesia as indicated by the bigger number of transactions. These rapid developments, however, make it more vulnerable to money laundering practices.
According to senior lawyer, Augustinus Hutajulu, the vulnerabilities emerged due to the very vomplex transactions at the stock market.
“On one hand, effect transaction at the stock market is very complex, abound with IT and security as well as huge trade volumes. On the other hand, the effect transaction is very simple where funds and stocks can shift quickly,” he said.
Generally, money laundering can be said as an attempt to hide sources of wealth which are outcomes of crime by making it look legal in the finance system.
Augustinus said he had not discovered a crime at the stock market being determined by the court as having binding verdicts.
“This raises questions on the effectivity of solving money landering practices in Indonesia, whether the measures are really effective or the crime is undetected by authorities?” he said during his doctoral promotion at Faculty of Law UGM.
Agustinus concluded that the law upholding in money laundering in Indonesian stock market is not effective, not just due to outdated regulations, but also weaknesses in the regulations and willingness and capacity of institutions that relate to money laundering eradication.
He suggested the government to set up a monitoring team under the control of the head of state where it acts as intelligence agency that uses high-tech method and equipment to find and inform authorities on the presence of such practices.
“Eradication of money laundering practices at the stock market should be coordinated directly by the President as head of state who can push a synergy between all related agencies,” he said.