This document discusses financing of terrorism and its relationship to money laundering. It explains that financing of terrorism can occur through legitimate sources of money that are then used to fund terrorist activities, known as reverse money laundering. Indonesia has laws that criminalize financing of terrorism from both legal and illegal sources. The document provides background on definitions of terrorism and money laundering. It also outlines Indonesia's laws regarding money laundering and how they have evolved to incorporate financing of terrorism and address recommendations from the Financial Action Task Force.
Whenever a terrorist acts take place, then our mind gets hunch with some pictures behind the act like Pakistan, Taliban, Muslims etc., we assume terrorism as an international concept and basic reasons behind them are Muslims, but no muse over the reasons, circumstances behind the indulgence of those terrorists in that particular act. Today people should understand the strict meaning and the key reasons behind the evolution of terrorism. It is very much important for us to understand the demarcation between “International terrorism” and “Domestic terrorism”. This research article tries to put forward some basic reasons behind the evolution of terrorism majorly in the context of India
Definition, Types, Goal, Tactics, Financing of Terrorism, Global Terrorism Index (GTI), Terrorism in India, Agencies dealing with terrorism in India, How to stop Terrorism?
In its broadest sense, terrorism is any act designed to cause terror In a narrower sense, terrorism can be understood to feature a political objective. The word terrorism is politically loaded and emotionally charged.
- What is Money Laundering?
- What is Terrorism Financing?
- What are the similarities and deferences between Money Laundering and Terrorism Financing?
- Three Stages of Money Laundering
Whenever a terrorist acts take place, then our mind gets hunch with some pictures behind the act like Pakistan, Taliban, Muslims etc., we assume terrorism as an international concept and basic reasons behind them are Muslims, but no muse over the reasons, circumstances behind the indulgence of those terrorists in that particular act. Today people should understand the strict meaning and the key reasons behind the evolution of terrorism. It is very much important for us to understand the demarcation between “International terrorism” and “Domestic terrorism”. This research article tries to put forward some basic reasons behind the evolution of terrorism majorly in the context of India
Definition, Types, Goal, Tactics, Financing of Terrorism, Global Terrorism Index (GTI), Terrorism in India, Agencies dealing with terrorism in India, How to stop Terrorism?
In its broadest sense, terrorism is any act designed to cause terror In a narrower sense, terrorism can be understood to feature a political objective. The word terrorism is politically loaded and emotionally charged.
- What is Money Laundering?
- What is Terrorism Financing?
- What are the similarities and deferences between Money Laundering and Terrorism Financing?
- Three Stages of Money Laundering
Terrorism has become a global phenomenon with a 61% increase in the number of people killed in terrorist attacks over the last year. The 2014 Global Terrorism Index provides a fact-based understanding of terrorism and its impact.
There is an urgent need for world community to fight terrorism together. There can not be good terrorist and bad terrorist A terrorist is a terrorist
Intelligence as a set of permanent institutions dates back only to the second half of the nineteenth century. But as information and news - in the dictionary meaning used in English since the middle of the fifteenth century, of 'knowledge as to events, communicated by or obtained from another, especially military' - it has always been collected as part of warfare
For a military, it can mean knowledge of the enemy and can distinguish between to defeat and to lose because information means knowledge and knowledge are power. Analysts see it as a package of information pending for clarification, and policymakers consider they should be informed so that they can meet the needs, stated or understood.
Intelligence gathers under the same umbrella the informational component of national security, internal and external policies, as well as certain aspects of international security in the case of global cross-entities (states, organizations).
This presentation is built up by gathering information from different references (Book, Articles, and Newspapers) by the author.
This slide has the brief overview regarding the Terrorism In Pakistan.
It's Types,Background,Causes,Effects Measures to stop terrorism & at the end Conclusion.
Made by the great effort plus contains the high quality visual Effects.
MYANMAR: " WE WILL DESTROY EVERYTHING " : MILITARY RESPONSIBILITY FOR CRIMES ...MYO AUNG Myanmar
MYANMAR: " WE WILL DESTROY EVERYTHING " : MILITARY RESPONSIBILITY FOR CRIMES AGAINST HUMANITY IN RAKHINE STATE
https://www.reuters.com/investigates/special-report/myanmar-rohingya-battalions/
The shock troops who expelled the Rohingya from Myanmar
Tip of the Spear A REUTERS INVESTIGATION
https://www.amnesty.org/en/documents/asa16/8630/2018/en/
27 June 2018, Index number: ASA 16/8630/2018
https://www.reuters.com/article/us-myanmar-rohingya-amnesty/top-myanmar-military-officers-should-be-tried-for-crimes-against-humanity-amnesty-international-idUSKBN1JN089
Top Myanmar military officers should be tried for crimes against humanity: Amnesty International
https://www.reuters.com/article/us-myanmar-rohingya-battalions-specialre/the-shock-troops-who-expelled-the-rohingya-from-myanmar-idUSKBN1JM1X7
The shock troops who expelled the Rohingya from Myanmar
https://www.reuters.com/article/us-myanmar-eu/eu-canada-sanction-myanmar-generals-over-rohingya-myanmar-says-two-are-fired-idUSKBN1JL0SC
EU, Canada sanction Myanmar generals over Rohingya; Myanmar says two are fired
Robin Emmott, Antoni Slodkowski
THE LEGAL AND INSTITUTIONAL FRAMEWORKS FOR COMBATTING MONEY LAUNDERING IN CAM...AkashSharma618775
Money laundering usually involves a series of multiple transactions used to mask the source of financial
assets, so that these assets can be used without compromising criminals seeking to their use. Money laundering can
happen through various intermediaries; bank transfers, both by wire and check, are the most common channels
for illicit money transfers. Money Laundering has several devastating effects; it damages financial sector
institutions that are critical for economic growth, promoting crime and corruption that slow economic growth,
reducing efficiency in the real sector of the economy. Money laundering is a problem not only in the world’s major
financial markets and sea centers but also in emerging markets. Cameroon has criminalized money-laundering in
line with the United Nations Convention against Corruption which was signed on 10th October, 2003, and ratified
by the President of the Republic on 6th February, 2006. Cameroon follows an all-crimes approach to moneylaundering whereby all offences under the laws and regulations of Cameroon constitute predicate offences. In
order to effectively combat money laundering, institutions have equally being put in place to combat it.
Terrorism has become a global phenomenon with a 61% increase in the number of people killed in terrorist attacks over the last year. The 2014 Global Terrorism Index provides a fact-based understanding of terrorism and its impact.
There is an urgent need for world community to fight terrorism together. There can not be good terrorist and bad terrorist A terrorist is a terrorist
Intelligence as a set of permanent institutions dates back only to the second half of the nineteenth century. But as information and news - in the dictionary meaning used in English since the middle of the fifteenth century, of 'knowledge as to events, communicated by or obtained from another, especially military' - it has always been collected as part of warfare
For a military, it can mean knowledge of the enemy and can distinguish between to defeat and to lose because information means knowledge and knowledge are power. Analysts see it as a package of information pending for clarification, and policymakers consider they should be informed so that they can meet the needs, stated or understood.
Intelligence gathers under the same umbrella the informational component of national security, internal and external policies, as well as certain aspects of international security in the case of global cross-entities (states, organizations).
This presentation is built up by gathering information from different references (Book, Articles, and Newspapers) by the author.
This slide has the brief overview regarding the Terrorism In Pakistan.
It's Types,Background,Causes,Effects Measures to stop terrorism & at the end Conclusion.
Made by the great effort plus contains the high quality visual Effects.
MYANMAR: " WE WILL DESTROY EVERYTHING " : MILITARY RESPONSIBILITY FOR CRIMES ...MYO AUNG Myanmar
MYANMAR: " WE WILL DESTROY EVERYTHING " : MILITARY RESPONSIBILITY FOR CRIMES AGAINST HUMANITY IN RAKHINE STATE
https://www.reuters.com/investigates/special-report/myanmar-rohingya-battalions/
The shock troops who expelled the Rohingya from Myanmar
Tip of the Spear A REUTERS INVESTIGATION
https://www.amnesty.org/en/documents/asa16/8630/2018/en/
27 June 2018, Index number: ASA 16/8630/2018
https://www.reuters.com/article/us-myanmar-rohingya-amnesty/top-myanmar-military-officers-should-be-tried-for-crimes-against-humanity-amnesty-international-idUSKBN1JN089
Top Myanmar military officers should be tried for crimes against humanity: Amnesty International
https://www.reuters.com/article/us-myanmar-rohingya-battalions-specialre/the-shock-troops-who-expelled-the-rohingya-from-myanmar-idUSKBN1JM1X7
The shock troops who expelled the Rohingya from Myanmar
https://www.reuters.com/article/us-myanmar-eu/eu-canada-sanction-myanmar-generals-over-rohingya-myanmar-says-two-are-fired-idUSKBN1JL0SC
EU, Canada sanction Myanmar generals over Rohingya; Myanmar says two are fired
Robin Emmott, Antoni Slodkowski
THE LEGAL AND INSTITUTIONAL FRAMEWORKS FOR COMBATTING MONEY LAUNDERING IN CAM...AkashSharma618775
Money laundering usually involves a series of multiple transactions used to mask the source of financial
assets, so that these assets can be used without compromising criminals seeking to their use. Money laundering can
happen through various intermediaries; bank transfers, both by wire and check, are the most common channels
for illicit money transfers. Money Laundering has several devastating effects; it damages financial sector
institutions that are critical for economic growth, promoting crime and corruption that slow economic growth,
reducing efficiency in the real sector of the economy. Money laundering is a problem not only in the world’s major
financial markets and sea centers but also in emerging markets. Cameroon has criminalized money-laundering in
line with the United Nations Convention against Corruption which was signed on 10th October, 2003, and ratified
by the President of the Republic on 6th February, 2006. Cameroon follows an all-crimes approach to moneylaundering whereby all offences under the laws and regulations of Cameroon constitute predicate offences. In
order to effectively combat money laundering, institutions have equally being put in place to combat it.
The widespread of violent extremism and terrorist attacks undermined societal stability and world peace. Additionally, it deepened the expansion of intercontinental crimes, money laundering and other illegal acts that have a crucial impact on global politics and economy. Thus, tackling this phenomenon within a legal and judicial framework is important for preserving human rights and societal peace, in addition to guaranteeing the right to a fair trial. The establishment of a comprehensive and fair judicial and legal system will help protect young people from joining radical terrorist organizations and strengthen the efforts to reintegrate these young people into their societies. Thus, this policy brief will discuss the post-revolutionary Tunisian context and its association with the phenomenon of violent extremism and will examine the new Tunisian Constitution and the new anti-terrorism law. Furthermore, this policy brief will also focus on the importance of reforming the Tunisian legal and judicial system in order to protect human rights and guarantee the rights and freedoms to all people, for that they are the foundation of the Tunisian revolution. Finally, there will be a series of recommendations directed at politicians and Tunisian legislators.
Author: Omar Wesleti
Terrorism and Criminal SEC400 Terrorism .docxmattinsonjanel
Terrorism and Criminal
SEC400 Terrorism and Criminal Activity Paper
Name
Class
Date
Professor
Terrorism and Criminal Activity Paper
Terrorism and criminal activity have many similarities in that the action of the criminal and the terrorist group are illegal, immoral, and result in victims but there are also distinct differences. Crime is an activity that goes against the laws of a society while terrorism can be supported by the state or government in which the terrorist operates. Terrorists are well trained groups that operate more like a military than a criminal group and commit violent crimes that are different from the violent crimes often time seen in the criminal element. The terrorist has a propensity for violence while not all crimes involve violent behavior.
Terrorist commit violent acts and even crimes to support a cause while criminal commit crimes for different motives, such as greed, jealousy, and anger. Terrorist groups emerge in a society where the group feels oppressed either politically or religiously (Gadek, 2008). These groups will form when members of the society experience the same anger and frustration at this oppression. Terrorist groups also form when their society is invaded by another country and their culture is threatened. Criminals commit crimes due to anger and frustration at their socioeconomic circumstances but will not commit acts of planned violence in order to make a statement to bring attention to their cause while the criminal takes steps to mask their crime.
Criminals will cover-up there fingerprints, where masks to hide their faces, or commit their crimes under the cover of darkness while the terrorist go to great lengths to bring attention to their actions to ensure their message can be spread. Terrorist groups have a specific agenda and will commit the greatest amount of destruction and violence in order to ensure that the media brings attention to their cause. Criminals operate in a specific geographical are while the terrorist conducts operations all over the globe, especially in westernized countries.
Prevention, Mitigation, and Enforcement Measures
Since the attacks on America on September 11, 2001 the focus of the government has been on developing antiterrorism measures that will prevent and effectively mitigate any further terrorist attacks. The first step of the government was to create the Department of Homeland Security in order to integrate federal agencies to ensure that intelligence warning about a potential attack does not go unnoticed, as in the case of 9/11. Failures in interagency communications led to a failure of the federal government to stop the terrorist attacks that killed over 3,000 Americans.
Homeland Security is designed to coordinate efforts to ensure that further terrorist attacks are prevented as well as to create an effective response system in the event of further terrorist attacks. Next the government created the USA P ...
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
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NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
Car Accident Injury Do I Have a Case....Knowyourright
Every year, thousands of Minnesotans are injured in car accidents. These injuries can be severe – even life-changing. Under Minnesota law, you can pursue compensation through a personal injury lawsuit.
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
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PUT DOWN THE FINANCING OF TERRORISM REVERSE MONEY LAUNDERING
Nurnaningsih Amriani, SH.MH.
Faculty of Law
University of Sumatera Utara (USU), Medan, Indonesia.
Email : ninink207@yahoo.com.
ABSTRACT
As one with the development of technology and information, has been born of financial transactions electronically enabling financial transactions are only recorded in an account without the cash transition. This activity support the proliferation of terrorism financing activities generally equated with money laundering if there is an indication that the money comes from as unauthorized result as predicate crime or known by the Financing of Terrorism Reverse Money Laundering (FTRML), so that financing of terrorism rules in an offense act of money laundering along with criminal act of terrorism. How if the money to finance terrorism came from a legitimate money? In Indonesia, has done well to criminalize the financing of terrorism emanating from the legal and illegal, was done so FTRML can put down and reduce the growth of global terrorists.
Keywords : Financing of Terrorism, Money Laundering, electronic transaction.
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INTRODUCTION
Terrorism is the most frightening specter in the universe other than war. There have been many victims of innocent lives, the children lose a parent, husband or wife loses his partner and property for acts of terror. Various ways have been made to eradicate terrorism, but still it grows and evolves continuously. How could this happen? in fact the terrorists move in groups but remains hidden and growing. This is of course not independent of funding to acquire all the needs of its activity. Various methods are used to raise funds and cross-border transactions without known clearly. This is where the law is needed, make arrangements with a combination of regulatory law combating terrorism with money laundering regulations.
this article, the author aims to explain terrorism relating to money laundering, which indicates that the most important thing of the growing terrorist is the presence of continuous financing to help its development. Without financing, the terrorist activities will not occur, so as to eradicate terrorism combating the advance funding to note how the growth.
TERRORISM AND FINANCING OF TERRORISM REVERSE MONEY LAUNDERING IN INDONESIA.
Money laundering is basically intended to conceal or disguise the illicit origin of the money by entering into a financial transaction system, could then be excluded as lawful money. Bassel Committee provides definitions that include money laundering as any form of payment and delivery of activities that use the facilities in the financial system to conceal the source or the rightful owner of the money (Effros, 1994, p.327). Black’s Law Dictionary define money laundering as term used to describe investment or other transfer of money flowing from racketeering, drug transaction, and other illegal sources into legitimate channels so that is original source cannot be traced (Campbell, 1990, p.884). Money laundering was first on criminalization as a crime by the United States in the Money Laundering Control Act 1986 and this is the first legislation in the world that define money laundering as a crime (Sjahdeini, 2007, p.29).
Terrorism is the use or threat of violence to intimidate or cause panic, especially as a means of affecting political conduct (Garner, 2004, p. 1484). Terrorism has been known since a long time, even as old as civilization predicted. Recorded since the era of Ancient Greece, Ancient Greek historian named Xenophon (430-349 BC) has written about the effectiveness of psychological warfare against the opponents of the Roman emperor who was considered as terrorism when it was (Henry. 1993, p. 651). According to the classical definition, the assassination of Julius Caesar on the Ides of March in 44 BC was also an act of terrorism (Smidt, p. 49-3). Then the Roman Emperor, Tiberius and Caligula using exclusion expropriation of property and execution as a tool to scare people so that they are not at odds with the government (Henry, 1993, 651:1). Roman and Greek occupation in Judea when it is considered also as an act of terrorism because of their technique when it kills people using a dagger or sword to trigger a mass uprising that eventually led to open warfare (Smidt, p. 49-4).
The incident has been described acts of terrorism, but the word "terrorism" itself was actually first used when the French Revolution (Smidt, p. 49-4). The use of terror when it supported openly by Robespierre as lat to raise the spirit of the revolution which then took him to a period of political dominance, known as the "Reign of Terror" (Henry, p. 651 :1). History tells us also that piracy in this case pirate, is “... an early form of terrorism" (Paasche, 1987, p. 180). It is evident from the acts of terrorism committed by hijacking ships and aircraft.
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Terrorist activities have been realized long ago that must be eradicated because the impact is very large for humanity, especially after the killing of King of Yugoslavia so that the committee of the United Nations, the International Convention was born called Convention for the Prevention and Punishment of Terrorism on December 9, 1999 and has been ratified by Indonesia with Law No. 6 of 2006. According to Article 2 (1) Convention for the Prevention and Punishment of Terrorism, the financing of terrorism is person by any means, directly or indirectly, unlawfully and willfully, provides or collects funds with the attention that they should be used or in the knowledge that they are to be used, in full or in part, in order to carry out : (a) An act which constitutes an offence within the scope of and as defined in one of the treaties listed in the annex ; or (b) Any other act intended to cause death or serious injury to a civilian, or to any other person not taking an active part in the hostilities in a situation of armed conflict, when the purpose of such act, by its nature or context, is to intimidate a population, or to compel a government or an international organization to do or to abstain from doing any act. And according to Article 2 (3) also states that for an act to constitute an offence set fourth in paragraph 1, it shall not be necessary that the funds were actually used to carry out an offence referred to in paragraph 1, subparagraph (a) or (b).
Indonesian criminalizes money laundering activities in 2002 through Law No. 15 of 2002 on Money Laundering at April 17, 2002. However, the Financial Action Task Force on Money Laundering (FATF) remained enter Indonesia blacklisted countries that do not effectively combat money laundering (NCCT List) because its Act considered to be less supportive of the anti-money laundering regime. The FATF was established in 1989 by the seven major industrial countries in the world (G7), namely Canada, France, Germany, Italy, Japan, United Kingdom, United States. The FATF was established to provide recommendations for improving the effectiveness of efforts to fight money laundering. In 1990 the FATF 40 recommendations discussed on that later become international standards to combat money laundering.
Furthermore, thanks to the FATF pressure Law No. 15 of 2002 converted into Law No. 25 of 2003 on money laundering (Article 2 (1) and Article 2 (2)), in which one set of assets used for terrorist activities shall be the proceeds of crime. Based on Law No. 25 of 2003 then there must be a predicate crime in the criminal offense of money laundering, it is related to the financing of terrorism in relation to money laundering activities.
Prior to the enactment of Law No. 25 of 2003 on Money Laundering, Indonesia only regulate acts of terrorism as one of the main sources which are assets that is used and the object of money laundering. Similarly, in Law No. 15 of 2002, just set the origin of terrorism as a form of crime in money laundering. Financing of terrorism has been stipulated in Government Regulation in Lieu of Law (Government Regulation) No. 1 of 2002 on Combating Terrorism, which then has been defined as a law that the Law No. 15 of 2003. After the enactment of Law No. 25 of 2003 , financing of terrorism from other crimes is introduced into the financial system to be able to be reused for terrorism (terrorist money laundering) and money derived from legitimate sources and then used to fund activities terrorism (financing of terrorism reverse money laundering). Both are equated as a result of a criminal act. It shows the world that Indonesia has participated in the activities of anti-terrorism and anti-money laundering. Today Law No. 25 of 2003 has been converted into Law No. 8 of 2010 about Eradication of Money Laundering.
An organization or terrorist members require substantial funds, so as to prevent and mitigate the occurrence of acts of terrorism, the flow of funds to be decided, is where the role of the Center for Financial Transaction Reports and Analysis Center (in Indonesia called PPATK) as the financial intelligence unit in Indonesia. In Law No. 25 of 2003 on Money Laundering, then there should be laundered funds derived from other crimes (predicate crime) but also a legitimate financial transaction but is intended to finances a terrorist activity. Financing of terrorism, as mentioned above is known as the financing of terrorism reverse money laundering. American Center of Democracy define reverse money laundering as the transportation of large quantities of cash for the intended promotion of terrorism or other crimes, criminals who are using clean money to commit crimes in the future called this scenario reverse money laundering (ACD). With the changes in the Law No. 25 of 2003 converted into Law No. 8 of 2010 which Followed the Recommendations of the FATF as an international standard is not affected by the Indonesian counter measure of FATF member countries the which is a major determinant of the economy's state. Counter measure may be closing foreign exchange account
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in a country member of the FATF, prohibit open or accept a Letter of Credit (L/C) from the affected country counter measure or loans and other assistance from members of the FATF.
Indonesia subsequently ratified the International Convention for the Suppression of the Financing of Terrorism in 1999 through Law No. 6 of 2006, LN 29/2009. This convention governing the funding committed by the person or group of people who happen between countries or multinational. In Article 3 of International Convention for The Suppression of The Financing of Terrorism 1999, that this convention shall not apply where the offence is committed within single state and no other state has a basis under Article 7 Paragraph 1, or Article 7 Paragraph 2, to exercise jurisdiction, except that the provisions of Article 12 to 18 shall, as appropriate, apply in those cases.
Under the rules can be seen that in Indonesia has shown the criminalization of the financing of terrorism as it has been mandated by the International Convention on combating the financing of terrorism. The efforts made by Indonesia is an effort contributed to the anti-money laundering regime and the termination of the flow of funds for terrorist activities is in line with the efforts of the international community in order to combat acts of terror committed by terrorists, criminalizes terrorist financing activities (financing of terrorism) or financing to terrorist (terrorist financing), which must be done because the UN also recognizes that the financing of terrorism is a matter of grave concern to the international community as a whole ... the number of seriousness of an act of international terrorism depend on the financing that terrorists may Obtain.
Financing of terrorism reverse money laundering is financing of terrorism coming from a legitimate source that is then used either directly or indirectly to terrorist activities. A legitimate source and then used to commit a crime is an inverse of money laundering activity (reverse money laundering) (Schott, 2006, p. 15). In Indonesia financing of terrorism was regulated into Law No. 9 of 2013 about Prevention and Eradication Financing of terrorism.
The proceeds for terrorist activities can be done in various ways to make money, but in terrorist activity can be also obtained funds from lawful income and unrelated crimes (FATF, 2002, p. 2-3), such as individual donations that people do not understand the purpose of the donation is given, or legal business activities whose profits intended for the financing of terrorism. Sources of funds are also derived from the crime such as theft, kidnapping, drug trafficking, narcotics, and so on. Financing of terrorism is the opposite of money laundering activities (reverse money laundering), as the following illustration :
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Money Laundering
Financing of Terrorism
Based on the above scheme, there are times when the financing of terrorism has the same phase with money laundering. Based on the source of funds that is inserted into a financial system, when derived from the crime or from a source that is illegal then there is a predicate crimes (predicate crime) which enter into the process of money laundering is then used to finance terrorist activities. If the funds are derived from legitimate sources or activities and through a financial transaction with the purpose of disguising the origin of the money is then used to perform a criminal act, then the act is called the financing of terrorism reverse money laundering.
Advances in technology, weapons, explosives and other equipment electrically burst that can be made by the terrorist group has been providing various facilities for terrorism and makes it even more dangerous. Terrorists also need funds to obtain weapons and explosives are widely used these days. Terrorist groups are organized using advanced equipment, good weapons and means of communication. In addition, in order to be well-trained personnel to carry out the action it needs to make training, takes place to accommodate the terrorists so that they can live and meet her daily needs. All it requires funding not less. Therefore, if each state could cut off funding for terrorists then can eradicate terrorism.
SOURCE
Dirty money
OBJECTIVE
Clean money
MONEY
LAUNDERING
Financial System
SOURCE
Clean money
Dirty money
FINANCING OF
TERORISM
Financial System
OBJECTIVE
Crimes
(Terrorism)
Illustration 1 : Difference between Money Laundering and Financing of Terrorism (Cassella, 2003, p.93)
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CONCLUSION
From the description of this article it was concluded that the Financing terrorism is the blood that support a criminal act of terrorism and at the same time support the weakest point of the chain of crime most easily detectable. The proceeds can be fund legitimate and illegitimate. Terminate funding by cutting the flow of money into the money laundering process which are then used to finance terrorist activities, will stop terrorist activities. With the regulation of money laundering terrorist financing of terrorism together with reverse money laundering in Indonesia Money Laundering Law No. 25 of 2003 converted into Law No. 8 of 2010, Terrorist Law No. 15/2003 and Law No. 9 of 2013 about Prevention and Eradication Financing of terrorism and ratified the Convention for the Prevention and Punishment of Terrorism by Act No. 6/2006, so Indonesia has participated in efforts to combat terrorism.
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REFERENCES
American Center of Democracy, ACD. Reverse Money Laundering and H.R. 3146. http://www.terrorfinance.org/the_terror_finance_blog/207/08/reverse-money-1.html.
Campbell, H. (1990). Black’s law Dictionary, Sixth edition, St. Paul Minn : West Publishing Co.
Cassella, S. D. (2003). Reverse Money Laundering, Journal of Money Laundering Control, No.1. Vol. 7.
Effros, R.C. ed. (1994). Current Legal Issues Affecting Central Banks, Vol.2, Washington : International Monetary Fund.
Financial Action Task Force on Money Laundering, FATF (2002). Report on Money Laundering Typologies 2001-2002.
Garner, B.A. (2004). Black’s Law Dictionary, 8th Ed., St. Paul : West Thomson.
Henry R. M. (1993). The New Encyclopedia Britannica II , 15th Ed., Chicago.
Law No. 25 of 2003 converted into Law No. 8 of 2010 about Money Laundering.
Law No. 15/2003 about Terrorism.
Law No. 9 of 2013 about Prevention and Eradication Financing of Terrorism.
Law No. 6/2006 about ratified of the Convention for the Prevention and Punishment of Terrorism 1999
Paasche, F. (1987). The Use of Force in Combating Terrorism, Columbia Journal of Transnational Law, 25th ed, Number 2.
Schott, P.A. (2006). Reference Guide To Anti-Money Laundering and Combating The Financing of Terrorism : Second Edition and Supplement on Special Recommendation IX, ed.2., Washington DC : World Bank Publications.
Sjahdeini, S.R. (2007). Seluk Beluk Tindak Pidana Pencucian Uang dan Pembiayaan Terorisme, cet. II, Jakarta : Pustaka Utama Grafiti.
Smidt, M, Combating Terrorism, Virginia : International and Operational Law Department, The Judge Advocate General’s School.
The Convention for the Prevention and Punishment of Terrorism 1999.