|

 

   

@


  

   
 


  

° 


    

  

 

A corrupt Indonesian banker, Hendra Rahardja was President of both Bank Harapan
Sentosa (BHS) and Bank Guna International (BGI) during President Suharto's New
Order regime. Rahardja fled Indonesia during Indonesia͚s economic crisis in
September 1997 following the liquidation of his banks. At the time of liquidation,
Rahardja's banks held a combined total of USD 1.4 billion in assets. Two years later,
he was arrested trying to enter Australia from Hong Kong on June 1, 1999, at Sydney's
Kingsford-Smith International Airport on a warrant from Indonesian authorities
circulated by Interpol. Although Indonesia has an extradition treaty with Australia, he
was never extradited before his death on January 26, 2003.
  
In 2002, an Indonesian court sentenced Rahardja to life in prison in absentia for
misusing 1.95 trillion rupiah [US $216.7 million] in central bank liquidity credits, a fine
of Rp30 million and required him to pay indemnities worth Rp1.9 trillion ( about USD
280 million). So far, Indonesia has been able to recover USD 3 million from Australia.

However, according to the Indonesian Attorney General Office, the bulk of Rahardja's
estimated USD 9.3 billion in assets remain in Hong Kong, China, the Cayman Islands,
and British Virgin Islands, where cooperation difficulties are delaying recovery.

However, there have recently been positive developments in cooperation to recover

Rahardja's assets.
Australia is currently in negotiations with Hong Kong to bring USD 800 million of
Raharja's assets back to Indonesia. Australia is said to be involved because the money
was channeled through Australian banks, but also because Indonesia was having no
luck on its own. Indonesian is reported to have originally contacted Hong Kong directly
to return the assets, but Hong Kong asked Indonesia to pay a 20 percent
administration fee and then to split the remaining 80 percent between the two
countries.
 


The term money laundering is used to describe the process

whereby the proceeds of crime are converted for the purpose
of concealing or disguising their illicit origin.
This process is necessary in order to sever the link between
the original criminal conduct and the proceeds of the crime.



oney laundering is generally a three stage process:

 , the placement phase where the profits generated by the criminal
activity must become separated from the criminal activity itself.

, the layering phase when steps must be taken to disguise the
route which the money takes during the laundering process.
, the integration phase where the money must become
available for use by the criminal organization.
(6
 
  
, Ilias Bantekas, p.60)









shall be an act of placing, transferring, disbursing,

spending, donating, contributing, entrusting, taking out of the country,
exchanging or other such acts related to, Assets known or reasonably
suspected by a Person to constitute proceeds of crime, for the purpose
of concealing or disguising the origins of assets as if such assets shall be
legitimate.

á


 
 



 

 



  






!




 




 
consist of the  !  


"
 and the #

 .
Both of legislation are a reflection of   
! $
 


! 40 recommendations

Such as
·|stablishment of a Financial Intelligence Unit (FIU)
·Introduction of Suspicious Transaction Reporting (STR) system
·Facilitation of Information exchange with overseas FIUs
(www.kofia.co.kr)



United Nation Convention against Transnational Organized

Crime 2004

Article 7 : easures to Combat oney-Laundering

Ú


  




 

   
!"
   

  % ! 

& '

·Countries should rapidly, constructively and effectively provide the

widest possible range of mutual legal assistance in relation to money
laundering and terrorist financing investigations, prosecutions, and
related proceedings.
·Countries should, to the greatest extent possible, render mutual legal
assistance notwithstanding the absence of dual criminality. Where dual
criminality is required for mutual legal assistance or extradition, that
requirement should be deemed to be satisfied regardless of whether
both countries place the offence within the same category of offence or
denominate the offence by the same terminology, provided that both
countries criminalise the conduct underlying the offence.
   

(  )*)&+,

·Administrative, regulatory, law enforcement and other

authorities dedicated to combating money laundering have
the ability to cooperate and exchange information at the
national and international levels.
·utual legal assistance shall be afforded to the fullest
extent possible under relevant laws, treaties, agreements
and arrangements of the requested State Party with respect
to investigations, prosecutions and judicial proceedings.
   

 -
 
.

/,
0°

&
    

Article 44 & 44A Indonesia Anti oney Laundering Law:

·For the purpose of preventing and eradicating money laundering, LA
can be undertaken with other countries through bilateral or multilateral
forums in accordance with prevailing laws and regulations.
·LA Agreement/Treaty with Government of the Republic of Indonesia
or under principles of reciprocity. LA includes, among other things,
collecting evidence and statements from person, providing evidence in
the form of documents, searching for and freezing the proceeds of crime,
and others.
|.


|.


1|.
2 means the Surrender by one State to another

state which requests the surrender of a person who is
accused or convicted on account of the commission of crime
outside the territory of the surrendering state and within the
jurisdiction of the territory the state requesting the said
surrender based on its right to try and convict the said
person.

á


 
 


"#"

 $%  
|.


In this case, Indonesia does extradition with Australia.

The legal basis of extradition is á  6  


    



 6  


 
á
 
 

 
.

In International level, extradition based on United Nation Convention

against Transnational Organized Crime 2004 Article 16. But, the
extradition don͛t success because the dead of Hendra Rahardja in
Australia. However, the Government of Indonesia has been tried to do
extradition for this case.