Revealing the unexplained wealth in Indonesian corporation: A revolutionary pattern in non-conviction-based asset forfeiture
ISSN: 1359-0790
Article publication date: 15 January 2020
Issue publication date: 10 February 2020
Abstract
Purpose
The purpose of this paper is to analyze the unexplained wealth inside the corporation and to initiate and apply unexplained wealth order in the Indonesian corporation based on the Indonesian legal system and prevailing laws. An effective tool needs to be implemented because of the facts that numerous corporate illegal activities lead to economic and financial crime. Meanwhile, there are difficulties to implement the corporate criminal liability. Non-conviction-based asset forfeiture will be a way out to deal with the current condition.
Design/methodology/approach
This paper explores and analyzes the Indonesian legal system, particularly a non-conviction-based asset forfeiture for corporate illegal activities. This paper is based on the research paper conducted with the legal normative approach.
Findings
Non-conviction-based asset forfeiture through unexplained wealth order will be an effective tool and a revolutionary pattern in the crime prevention perspective dealing with corporate crime. Corporate criminal liability in anti-corruption regime can be viewed from two perspectives by combining and integrating crime prevention approach as well as the repressive approach. The Indonesian Supreme Court Regulation number 13 of 2016 is a breakthrough in the criminal justice system to redesign case handling procedure toward corporate crime. It needs to be supported by precise asset forfeiture law. Furthermore it is necessity to strengthening and built corporations with moral and ethical business values.
Practical implications
This paper can be a source to explore the unexplained wealth that can occur in the corporation and the way to overcome it through unexplained wealth order and non-conviction-based asset forfeiture.
Originality/value
This paper contributes by initiating a non-conviction-based asset forfeiture, which is implementing the in rem proceeding, to make sure the crime does not pay and the victim and society suffer less because of the corporate crime.
Keywords
Acknowledgements
The author would like to acknowledge the support provided by the Indonesian Minister of Research Technology and Higher Education for funding the 2018 Higher Education Excellent Research based on the contract number 120/SP2H/LT/DRPM/2018 dated January 30, 2018.
Citation
Lukito, A.S. (2020), "Revealing the unexplained wealth in Indonesian corporation: A revolutionary pattern in non-conviction-based asset forfeiture", Journal of Financial Crime, Vol. 27 No. 1, pp. 29-42. https://doi.org/10.1108/JFC-11-2018-0116
Publisher
:Emerald Publishing Limited
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