Insider Trading and Money Laundering in the Perspective of Transnational Crime

Suwarno Abadi, Sekaring Ayumeida Kusnadi, Rihantor Bayu Aji, Dwi Elok Indriastuty


In this paper, the main topic concerns the arrangement of insider trading and money laundering in the perspective of transnational crime. The discussion uses the theory of legal protection which is divided into two: Preventive Legal Protection and Repressive Legal Protection. The study found that normatively, insider trading does not include other forms of money laundering crime as stipulated in Article 2 paragraph (1) of the Criminal Act of Money Laundering law (TPPU Law), but the article regulates one of the criminal acts in the Capital Market sector. Therefore, even though it is not explained in detail as a form of capital market crime, insider trading is one of the criminal acts in the capital market and categorized as predicate crime. Referring to the theory of legal protection, the application of POJK 12/POJK.01/2017, which is aimed at the activities of the financial services sector through risk-based approaches that adopt international standards as recommended by the Financial Action Task Force on Money Laundering (FATF), can be said to have a spirit of preventive legal protection. Furthermore, Law Number 8 of 2010 concerning Prevention and Eradication of Money Laundering Crimes, is more influenced by repressive legal protection.

Keywords: Insider Trading, Money Laundering, Transnational Crime

DOI: 10.7176/JLPG/89-08

Publication date:September 30th 2019

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ISSN (Paper)2224-3240 ISSN (Online)2224-3259

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