Strengthening the role of lawyers and other professional advisers in addressing economic and financial crimes in Indonesia

Date07 October 2019
Published date07 October 2019
AuthorAnastasia Suhartati Lukito
Subject MatterFinancial risk/company failure,Financial crime
Strengthening the role of lawyers
and other professional advisers in
addressing economic and nancial
crimes in Indonesia
Anastasia Suhartati Lukito
Faculty of Law, University of Surabaya, Surabaya, Indonesia
Purpose This paper aims to explain the regulations in Indonesia that apply to lawyers and other
professional advisers in terms of their obligations as reporting parties of suspicious nancial transactions
with respect to money launderingand other nancial crimes. As lawyers and other professional advisersoffer
services to the business communityin Indonesia, they are vulnerable to becoming partiesto illegal business
transactions.The results could lead to bribery, graft,tax crime and corruption in Indonesia.
Design/methodology/approach This paper explores and analyzes the obligations of lawyers and
other professional advisers underIndonesian law, with particular reference to their obligations as reporting
parties inefforts to prevent economic crime within the countrysbusiness community.
Findings Lawyers and other professionaladvisers, as reporting parties, can be viewed as the gatekeepers
that inhibit economic and nancial crimes. Consequently, a new perspective is needed for all of the legal
professionsso that they can protect themselves from the risks of being targetedby nefarious clients/offenders.
To strengthenthe role of these advisers, it is recommended that both a code of ethicsand know your customer
principleto be implemented.
Practical implications This paper can serve as a resource thatexplores the functions of lawyers and
other professional advisers as reporting parties whose aim is to prevent nancial and economic crime in
Originality/value This paper encourages lawyers, other professional advisers, and public and private
institutions to implementa code of ethics, and also integrity and professionalism, witha view to preventing
economic and nancial crimes. According to the code, the functions and obligations of lawyers and other
professional advisers include discouraging such offenses. The code becomes effective when legal
professionalsadhere to legal ethics and integrity.
Keywords Financial crime, Reporting parties, Code of ethics, Lawyer, Professional advisers
Paper type Viewpoint
The Government of Indonesia placesa high priority on strengthening its countrys economic
and business climate. As part of those efforts, governmental agencies, public institutions,
the private sector and other related entities are urged to support this policy. Legal
practitioners, togetherwith other professional advisers who work withinlegal services, play
a signicant role in maximizing economic development in Indonesia. Lawyers who hold
professional, independentand responsible positions have strict codes of conduct,both inside
and outside the court. The Indonesian governments tax amnesty 2016 program requires
cooperation from every aspect of the businessworld. Consequently, the cooperation of legal
practitioners and otherprofessional advisers is important to the success of the program. The
aim of the program is to reduce tax and othernancial crime, and thereby, it will become a
the role of
Journalof Financial Crime
Vol.26 No. 4, 2019
pp. 1107-1116
© Emerald Publishing Limited
DOI 10.1108/JFC-11-2016-0072
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