The Dynamics of Anti-Money Laundering Regulation in the Governance of Fintech and E-Commerce Companies in Indonesia

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Published: 2024-07-27
Keywords:
Anti-money laundering, Fintech, E-commerce, Regulation, Compliance, Innovation, Digital market

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Aris Fiana
Universitas Sunan Giri Surabaya
Arif Rachman Putra
Universitas Sunan Giri Surabaya
Agung Satryo Wibowo
Universitas Sunan Giri Surabaya

Abstract

This literature study analyzes the influence of Indonesia's Anti-Money Laundering (AML) regulatory framework on fintech and e-commerce companies, focusing on its operational, financial, and innovative impacts. Employing a qualitative descriptive approach through normative juridical analysis of secondary legal sources, the research examines core regulations: Law Number 8 of 2010 on Money Laundering Crimes, OJK Regulation Number 12/POJK.01/2017, BI Regulation Number 19/12/PBI/2017, and PPATK Regulation Number 11 of 2016. The findings indicate that the AML framework comprehensively integrates digital companies into the national financial reporting system, imposing mandatory Customer Due Diligence, transaction monitoring, and suspicious activity reporting. Operationally, this transforms business processes, introducing new compliance layers and technological complexity. Financially, it creates significant fixed costs for compliance infrastructure and specialized personnel, affecting profitability and competitive dynamics, particularly for startups. Regarding innovation and market development, AML regulations act as a dual-force catalyst and constraint. They spur innovation in Regulatory Technology (RegTech) and serve as a reputational differentiator, fostering consumer trust and facilitating global investment. Concurrently, they filter out anonymity-based business models, potentially slow time-to-market, and encourage market consolidation by favoring scaled players. The study concludes that AML regulation has fundamentally reshaped Indonesia's digital ecosystem, enforcing a trade-off between security and agility, and directing innovation towards a more structured and accountable trajectory within the global financial system.

Article Details

Issue

Vol. 4 No. 2 (2024): Journal of Social Science Studies (JOS3)

Section

Articles

How to Cite

Fiana, A., Putra, A. R., & Wibowo, A. S. (2024). The Dynamics of Anti-Money Laundering Regulation in the Governance of Fintech and E-Commerce Companies in Indonesia. Journal of Social Science Studies, 4(2), 397-412. https://jos3journals.id/index.php/jos3/article/view/382

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