IDEAS home Printed from https://ideas.repec.org/a/idn/jclijn/v1y2022i1cp47-70.html
   My bibliography  Save this article

The Urgent Need To Amend The Indonesian Law On Currencies To Face The Digital Age

Author

Listed:
  • Jamal Wiwoho

    (Universitas Sebelas Maret, Indonesia)

  • Dona Budi Kharisma

    (Universitas Sebelas Maret, Indonesia)

  • Dwi Tjahja K. Wardhono

    (Bank Indonesia Institute, Indonesia)

Abstract

Digital payments are proliferating along with a massive and rapid digital transformation. However, the characteristics of transactions using digital payments, which are real-time, not face-to-face, and borderless create potential risks for financial crimes, including, Money Laundering and Funding Terrorism. The potential for abuse occurs in the registered and licensed digital payments sector and illegal digital payments that are not registered with the Bank Indonesia. Undoubtedly, this condition can threaten economic stability and financial system integrity. This article seeks to identify the potential for digital payment use for financial crime and construct a legal framework to prevent the misuse of FinTech for financial crime in Indonesia. This type of research is legal research. The research method used was a statutory comparative approach. The legal materials used were primary and secondary legal materials. The findings have been analysed using qualitative data analysis techniques. The results of the study show that several cases of terrorism financing have been proven to have used FinTech digital payments as a means of online funding. In this regard, to maintain the integrity of the financial system and strengthen the government’s control functions, a comprehensive legal framework is needed through the establishment of Law on FinTech.

Suggested Citation

  • Jamal Wiwoho & Dona Budi Kharisma & Dwi Tjahja K. Wardhono, 2022. "The Urgent Need To Amend The Indonesian Law On Currencies To Face The Digital Age," Journal of Central Banking Law and Institutions, Bank Indonesia, vol. 1(1), pages 47-70, January.
    • Handle: RePEc:idn:jclijn:v:1:y:2022:i:1c:p:47-70
    DOI: https://doi.org/10.21098/jcli.v1i1.7
    as

    Download full text from publisher

    File URL: https://jcli-bi.org/index.php/jcli/article/view/7/10
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.21098/jcli.v1i1.7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idn:jclijn:v:1:y:2022:i:1c:p:47-70. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sudiro Pambudi or R. Dwi Tjahja Kusumo Wardhono (email available below). General contact details of provider: https://edirc.repec.org/data/bigovid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.