Strengthening Beneficial Ownership Transparency to Prevent Corruption Based Money Laundering in Indonesia
DOI:
https://doi.org/10.65960/ijlss.2.3.2026.22Abstract
This article examines the role of beneficial ownership transparency in preventing corruption based money laundering in Indonesia. Corruption often produces illicit proceeds that must be concealed through financial transactions, corporate vehicles, nominee arrangements, and layered ownership structures. Although Indonesia has introduced rules requiring corporations to disclose their beneficial owners, the effectiveness of these rules depends on whether the information is accurate, verified, current, accessible to competent authorities, and usable for asset tracing and recovery. Using normative legal research with statutory, conceptual, and limited international standard approaches, this article argues that Indonesia should move from formal disclosure toward substantive transparency. The analysis shows that beneficial ownership transparency must be integrated with anti corruption law, anti money laundering enforcement, financial intelligence, corporate registration, tax supervision, and asset recovery mechanisms. The article contributes a six pillar strengthening model consisting of legal strengthening, data verification, inter agency integration, risk based supervision, effective sanctions, and asset recovery orientation.
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