Progressive Law as an Alternative Solution to
Eradicate Money Laundering from Drug-Related
Transactions
Juna Karo Karo
1
, Bismar Nasution
2
, Sunarmi
3
, Mahmud Mulyadi
4
{junajunakaban@ymail.com
1
}
Universitas Sumatera Utara, Indonesia
1, 2, 3, 4
Abstract. Cases of drug-related criminal offenses are often accompanied by money
laundering, but in practice eradication of money laundering from drug-related criminal
offenses often encounters problems due to the existing regulations. Thus, a progressive law
is required, to allow investigation on the money laundering crimes when there are “assets
that are known or reasonably suspected to be proceeds of criminal offences”. In addition,
coordination between the Police and Indonesian Financial Transaction Reports and
Analysis Centre (INTRAC) can be realized through an integrated function to support the
law enforcement institutions to eradicate money laundering.
Keywords: Progressive Law, Money Laundering, Drugs
1 Introduction
The increasing practice of money laundering, especially in Indonesia, has caused such
losses to the state that clear efforts are needed to overcome them. Considering the increasing
global competition in the financial services industry, some parties continue to question the
efficiency of anti-money laundering efforts. International efforts have been carried out.
The practice of money laundering has received considerable attention from countries all
over the world. Moreover, the money in the practice of money laundering comes from serious
crimes such as corruption, drug trafficking, and terrorism. Money laundering related to drug
crimes is one of the predicate crimes that underlie money laundering crimes. Efforts to eradicate
money laundering often encounter obstacles, particularly the legal provisions in its handling.
The court proceedings on drug-related criminal offenses often reveal cases of money laundering.
Public prosecutors in charge of such cases should be given special authority because these drug-
related criminal offenses are categorized as serious crimes. Therefore, a regulation to
accommodate the implementation of money laundering eradication is needed, that the
eradication could depart from the current legal provisions which are still rigid and need to be
reformed [1].
Prof. Satjipto argues that the culmination of legal method is when people dare to break free
from the shackles of legislation and find new progressive ways. In this context, we no longer
perform arithmetic in mathematics or spell out legislature articles; but rather act creatively and
make the leap. We use the term “leap” to define that it is not merely following or bound by past
habits (commonly referred to as jurisprudence or stare decisis) but by producing entirely new
ICOLEG 2021, June 29-30, Semarang, Indonesia
Copyright © 2021 EAI
DOI 10.4108/eai.29-6-2021.2312622