Quo Vadis legal shielding: examining the abuse of attorney immunity as a corporate enabler in Indonesia’s money laundering landscape

The misuse of attorney immunity as a corporate enabler in money laundering threatens Indonesia’s macroeconomic stability, causing inflation, significant fiscal losses, and hindered asset recovery. This study aims to identify the root causes of legal contradictions, analyze the systemic impacts of this abuse, and formulate a regulatory harmonization model. Employing a normative legal methodology, the research utilizes hierarchical regulatory examination, philosophical conflict deconstruction, and comparative studies. The findings reveal that the contradiction between absolute attorney immunity (Law No. 18/2003) and the audit authority of the Financial Transaction Reports and Analysis Center/PPATK (Law No. 8/2010) creates a legal vacuum exploited to reject audits of suspicious transactions. Furthermore, non-compliance with FATF Recommendation 22 risks designating Indonesia as a high-risk jurisdiction, potentially triggering global financial isolation and increased borrowing costs. To mitigate the symbiosis of vulnerability between weak non-bank sector compliance and legal shielding, urgent regulatory harmonization is required. The study concludes that implementing “break-glass immunity” and accessory liability clauses is crucial to prevent legal practitioners from functioning as facilitators of illicit financial flows, thereby protecting Indonesia’s economic sovereignty.

Authors

Institutions

Publication Details

Journal
Cogent Social Sciences
Published
2026-04-07
DOI
https://doi.org/10.1080/23311886.2026.2637242
Primary Topic
Crime, Illicit Activities, and Governance
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Quo Vadis legal shielding: examining the abuse of attorney immunity as a corporate enabler in Indonesia’s money laundering landscape

Lasmin Alfies Sihombing
Cogent Social Sciences
Crime, Illicit Activities, and Governance
article

Quo Vadis legal shielding: examining the abuse of attorney immunity as a corporate enabler in Indonesia’s money laundering landscape

Lasmin Alfies Sihombing
article en

Abstract

The misuse of attorney immunity as a corporate enabler in money laundering threatens Indonesia’s macroeconomic stability, causing inflation, significant fiscal losses, and hindered asset recovery. This study aims to identify the root causes of legal contradictions, analyze the systemic impacts of this abuse, and formulate a regulatory harmonization model. Employing a normative legal methodology, the research utilizes hierarchical regulatory examination, philosophical conflict deconstruction, and comparative studies. The findings reveal that the contradiction between absolute attorney immunity (Law No. 18/2003) and the audit authority of the Financial Transaction Reports and Analysis Center/PPATK (Law No. 8/2010) creates a legal vacuum exploited to reject audits of suspicious transactions. Furthermore, non-compliance with FATF Recommendation 22 risks designating Indonesia as a high-risk jurisdiction, potentially triggering global financial isolation and increased borrowing costs. To mitigate the symbiosis of vulnerability between weak non-bank sector compliance and legal shielding, urgent regulatory harmonization is required. The study concludes that implementing “break-glass immunity” and accessory liability clauses is crucial to prevent legal practitioners from functioning as facilitators of illicit financial flows, thereby protecting Indonesia’s economic sovereignty.

Cogent Social SciencesVol. 12(1)
Pakuan University (ID)
Peace, Justice and strong institutions
Openalex Percentile: Top 27%
Crime, Illicit Activities, and Governance
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.