Money Laundering Proceeds of Forestry Crimes in the Perspective of the National Criminal Code: Follow the Money Approach

Abstract

Forestry crimes such as illegal logging are often accompanied by money laundering efforts  through the formal banking system to disguise the origin of the proceeds of crime. The enactment of Law Number 1 of 2023 concerning the National Criminal Code, which integrates money laundering provisions into the general criminal codification, raises academic urgency to examine the relevance of the follow the money approach  to money laundering crimes originating from forestry crimes. This research aims to analyze legal arrangements, the application of the follow the money approach, and the obstacles to law enforcement after the enactment of the National Criminal Code. The research uses a normative juridical method  with a statute approach and a conceptual approach, sourced from primary, secondary, and tertiary legal materials that are analyzed descriptive-analytically. The results of the study show that forestry is still maintained as  a predicate crime in Article 2 paragraph (1) letter w of the TPPU Law and Article 607 paragraph (2) letter w of the National Criminal Code. The follow the money approach  has proven to be effective in tracing the flow of funds from illegal logging, but its implementation is still hampered by sectoral egos, lack of transparency of beneficial ownership, and weak coordination between institutions such as PPATK, MoEF, and the police. It was concluded that the optimization of Article 607 and Article 608 of the National Criminal Code requires harmonious derivative regulations, strengthening the capacity of investigators, and institutional synergy so that the eradication of money laundering from forestry crimes runs effectively and sustainably.