A new criminal jurisdiction to combat cross-border money laundering
| DOI | https://doi.org/10.1108/JMLC-06-2021-0059 |
| Published date | 18 August 2021 |
| Date | 18 August 2021 |
| Pages | 540-550 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Hanafi Amrani,Mahrus Ali |
A new criminal jurisdiction to
combat cross-border
money laundering
Hanafi Amrani and Mahrus Ali
Department of Criminal Law, Universitas Islam Indonesia, Yogyakarta, Indonesia
Abstract
Purpose –The purpose of this study is to analyze the emergence of the changing face of criminal jurisdiction in
dealing with cross-border money laundering that develops dynamically due to the development of globalization.
Design/methodology/approach –This research was a doctrinal legal research using conceptual
approach concerning the verystrict principle of territorial jurisdiction in criminal law.This study also used
case approach related to the application of extraterritorial jurisdiction and long-arm jurisdiction in some
cross-border money launderingcases. The collection of legal materials was carried outthrough literature as
well as case study and wasanalyzed qualitatively based on data reduction, presentationand concluding.
Findings –This study revealed that territorial jurisdiction which was originally strictly enforced by state
sovereignty over crimes that occurred in its territory then changed widely with multi-territorial perspective.
Because of its condition, the state then expands its authority to deal with money laundering as a cross-border
crime involving more than one territorial state, namely, by using extraterritorial jurisdiction and then developed
into a long-arm jurisdiction trend that allows state authorities to prosecute foreigners outside its state boundaries.
Originality/value –The research finding can be usedas one of the alternatives by countries to break the
territorialjurisdiction in combating the cross-border money laundering.
Keywords Extraterritorial jurisdiction, Territorial jurisdiction, Cross-border money laundering,
%2C Long-arm jurisdiction
Paper type Research paper
Introduction
It is not exaggeration to argue that the globalization has indeed affected various sectors of human
life, including law and economics. Ease of transaction which becomes timeless was the only
example of a positive impact that can be received from this phenomenon. Meanwhile,
globalization more specifically from a legal context has benefited participants not only in the legal
acts but also in the illegal one as well (Ahmed, 2016). The expansion and spread out of crimes into
worldwide operations such as money laundering were the bad side of this trend (Amrani, 2017 ).
Money laundering is a crime that movesdynamically and encounters various important
issues in its development. One of the interesting things to deeply analyze is about money
laundering jurisdictions due to the internationalization process. This type of crime is
committed across the boundaries of multiple jurisdictions in which criminals, proceeds and
documentary evidence can easily move from one jurisdiction to another (Rueda, 2001;
Mugarura, 2016). By using the development of technology which facilitates the method of
transferring illicit funds across borders, criminals use them to make money laundering
easier to accomplish and are harder to detect (Sornarajah, 1999;Mikeladze, 2018).
Authors thank to Faculty of Law Universitas Islam Indonesia for funding this research.
JMLC
25,3
540
Journalof Money Laundering
Control
Vol.25 No. 3, 2022
pp. 540-550
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-06-2021-0059
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