FINANCIAL CRIME IN DIGITAL PAYMENTS
Digital payments are proliferating along with a massive and rapid digital transformation. However, the characteristics of transactions using digital payments, which are real-time, not face-to-face, and borderless create potential risks for financial crimes, including, Money Laundering and Funding Te...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Bank Indonesia
2022-01-01
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| Series: | Journal of Central Banking Law and Institutions |
| Subjects: | |
| Online Access: | https://jcli-bi.org/index.php/jcli/article/view/7 |
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| _version_ | 1849722596559421440 |
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| author | Jamal Wiwoho Dona Budi Kharisma Dwi Tjahja K. Wardhono |
| author_facet | Jamal Wiwoho Dona Budi Kharisma Dwi Tjahja K. Wardhono |
| author_sort | Jamal Wiwoho |
| collection | DOAJ |
| description | Digital payments are proliferating along with a massive and rapid digital transformation. However, the characteristics of transactions using digital payments, which are real-time, not face-to-face, and borderless create potential risks for financial crimes, including, Money Laundering and Funding Terrorism. The potential for abuse occurs in the registered and licensed digital payments sector and illegal digital payments that are not registered with the Bank Indonesia. Undoubtedly, this condition can threaten economic stability and financial system integrity. This article seeks to identify the potential for digital payment use for financial crime and construct a legal framework to prevent the misuse of FinTech for financial crime in Indonesia. This type of research is legal research. The research method used was a statutory comparative approach. The legal materials used were primary and secondary legal materials. The findings have been analyzed using qualitative data analysis techniques. The results of the study show that several cases of terrorism financing have been proven to have used FinTech digital payments as a means of online funding. In this regard, to maintain the integrity of the financial system and strengthen the government’s control functions, a comprehensive legal framework is needed through the establishment of Law on FinTech. |
| format | Article |
| id | doaj-art-306c80e61de349d1aa27d263fd83e187 |
| institution | DOAJ |
| issn | 2827-7775 2809-9885 |
| language | English |
| publishDate | 2022-01-01 |
| publisher | Bank Indonesia |
| record_format | Article |
| series | Journal of Central Banking Law and Institutions |
| spelling | doaj-art-306c80e61de349d1aa27d263fd83e1872025-08-20T03:11:18ZengBank IndonesiaJournal of Central Banking Law and Institutions2827-77752809-98852022-01-0111477010.21098/jcli.v1i1.77FINANCIAL CRIME IN DIGITAL PAYMENTSJamal Wiwoho0Dona Budi Kharisma1Dwi Tjahja K. Wardhono2Universitas Sebelas Maret, IndonesiaUniversitas Sebelas Maret, IndonesiaBank IndonesiaDigital payments are proliferating along with a massive and rapid digital transformation. However, the characteristics of transactions using digital payments, which are real-time, not face-to-face, and borderless create potential risks for financial crimes, including, Money Laundering and Funding Terrorism. The potential for abuse occurs in the registered and licensed digital payments sector and illegal digital payments that are not registered with the Bank Indonesia. Undoubtedly, this condition can threaten economic stability and financial system integrity. This article seeks to identify the potential for digital payment use for financial crime and construct a legal framework to prevent the misuse of FinTech for financial crime in Indonesia. This type of research is legal research. The research method used was a statutory comparative approach. The legal materials used were primary and secondary legal materials. The findings have been analyzed using qualitative data analysis techniques. The results of the study show that several cases of terrorism financing have been proven to have used FinTech digital payments as a means of online funding. In this regard, to maintain the integrity of the financial system and strengthen the government’s control functions, a comprehensive legal framework is needed through the establishment of Law on FinTech.https://jcli-bi.org/index.php/jcli/article/view/7digital paymentsfinancial crimefinancial services |
| spellingShingle | Jamal Wiwoho Dona Budi Kharisma Dwi Tjahja K. Wardhono FINANCIAL CRIME IN DIGITAL PAYMENTS Journal of Central Banking Law and Institutions digital payments financial crime financial services |
| title | FINANCIAL CRIME IN DIGITAL PAYMENTS |
| title_full | FINANCIAL CRIME IN DIGITAL PAYMENTS |
| title_fullStr | FINANCIAL CRIME IN DIGITAL PAYMENTS |
| title_full_unstemmed | FINANCIAL CRIME IN DIGITAL PAYMENTS |
| title_short | FINANCIAL CRIME IN DIGITAL PAYMENTS |
| title_sort | financial crime in digital payments |
| topic | digital payments financial crime financial services |
| url | https://jcli-bi.org/index.php/jcli/article/view/7 |
| work_keys_str_mv | AT jamalwiwoho financialcrimeindigitalpayments AT donabudikharisma financialcrimeindigitalpayments AT dwitjahjakwardhono financialcrimeindigitalpayments |