<![CDATA[This study examines the extent to which Muhammadiyah’s financial governance practices align with the Anti-Money Laundering (AML) regime in Indonesia, particularly in the context of humanitarian and philanthropic fund management. The background of this research stems from increasing global scrutiny toward non-profit organizations due to potential risks of misuse of funds, while many religious-based organizations operate outside formal AML reporting obligations. Therefore, this research aims to analyze whether Muhammadiyah’s institutional practices, particularly through its humanitarian and philanthropic bodies, reflect substantive compliance with AML principles. This research employs a qualitative juridical-empirical method by analyzing regulatory frameworks, institutional documents, and interview data from key organizational actors. The findings show that although Muhammadiyah is not formally categorized as a reporting entity under Indonesian AML regulations, its financial governance mechanisms demonstrate significant alignment with AML objectives. These include transparency in financial management, internal and external audit mechanisms, donor verification practices, and documentation systems that enable traceability of funds. The discussion highlights that Muhammadiyah operates within a model of substantive compliance, where ethical governance and institutional accountability function as preventive measures against financial misuse. The study concludes that value-based governance within religious organizations can contribute to the broader goals of AML regimes without necessarily imposing excessive regulatory burdens. Strengthening formal internal compliance mechanisms may further enhance institutional credibility and facilitate collaboration with global humanitarian and financial partners.]]>
