Financial Crime World

Indonesian Money Laundering Case: A Reminder of the Asian Financial Crisis

Disgraced Tax Official Rafael Alun Trisambodo and the Asian Financial Crisis

Indonesia’s ongoing money laundering case involving disgraced tax official Rafael Alun Trisambodo serves as a jarring reminder of the Asian financial crisis that hit the country two decades ago.

Money Laundering Allegations Against Rafael Alun Trisambodo

  • Accused of laundering approximately $6 million in illegal funds
  • Accepted a staggering $1 million in gratification
  • Viral video of his son’s assault on ex-girlfriend’s ex-boyfriend led to investigations
  • Suspension and termination in 2023
  • Trial began on August 30, 2023

Indonesia’s Complex Money Laundering Cases

Money laundering cases in Indonesia are notoriously complex. Prosecuting money laundering requires evidence of a predicate crime, making the process laborious. As a result, prosecutors often focus on the predicate crime and leave money laundering charges untouched.

Origins of Money Laundering Legislation in Indonesia

  • Asian financial crisis of 1997 led to drafting and enactment of financial legislation
  • IMF agreement for $11.4 billion in financial aid required transparency in banking law
  • Indonesia’s money laundering legislation enacted in 2002
  • Creation of Financial Transaction Reports and Analysis Centre (PPTAK) in 2003

Hesitancy to Pursue Money Laundering Charges

Indonesian prosecutors have been hesitant to pursue money laundering charges due to their complexity and the requirement for proving two separate illegal acts. Instead, they focus on prosecuting predicate crimes, such as corruption.

A Glimpse into Trisambodo’s Case

Trisambodo’s case adds an intriguing layer to Indonesia’s ongoing battle against financial crimes. With apparent evidence suggesting a predicate crime of gratification followed by money laundering, legal experts will be watching closely as the trial unfolds.

Prison Sentence for Trisambodo’s Son

Meanwhile, Trisambodo’s son, Mario Dandy Satriyo, was sentenced to 12 years in prison in September for the aggravated assault of a teenager. The Indonesian legal system’s firm stance on the issue offers some comfort in their commitment to dealing with financial and violent crimes.