Gautam Kumar Jha
Assistant Professor, Centre for Chinese and Southeast Asian Studies, School of Language, Literature and Culture Studies JNU, New Delhi-110067

Published : 11 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 11 Documents
Search

Strengthening the Gatekeeper Function of Banks: The Role of KYC in Anti-Money Laundering Legal Framework Simanjuntak, Efendi Lod; Jha, Gautam Kumar
Lex Publica Vol. 12 No. 2 (2025)
Publisher : APPTHI

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58829/lp.12.2.2025.320

Abstract

This study critically examines the role of Know Your Customer (KYC) compliance within Indonesia’s anti-money laundering and counter-terrorism financing (AML/CFT) framework. Employing a normative juridical approach, the research analyzes key regulatory instruments, including Law Number 8 of 2010, POJK Number 12/POJK.01/2017, and the institutional role of PPATK, alongside relevant legal doctrines and international standards, particularly those of the Financial Action Task Force (FATF). The study addresses three core issues: the structuring of KYC obligations within Indonesia’s legal framework, the implementation of KYC principles by financial institutions as part of risk management strategies, and the challenges encountered in practice. The findings demonstrate that KYC functions as a central legal and operational instrument, enabling customer identification, transaction monitoring, and reporting of suspicious activities, thereby reinforcing the banking sector’s role as a gatekeeper in preventing financial crimes. However, its effectiveness is constrained by data quality issues, technological limitations, uneven institutional capacity, and increasingly sophisticated laundering techniques. The study concludes that strengthening regulatory enforcement, enhancing technological adoption (including RegTech and AI), and improving inter-agency coordination are essential to optimize KYC effectiveness.