Asset Recovery Research Articles

Efforts of The Prosecutor as State Attorney to Recovery Recovery of State Losses Through Replacement Money

Purpose: The Corruption Law in Indonesia faces technical and normative challenges in collecting compensation for state losses. Technical obstacles include concealment of assets, inability of convicts or heirs to pay compensation, and rejection by heirs or third parties. In addition, corruptors often prefer to serve additional prison sentences as a substitute for compensation money. This law also lacks legal certainty and is disproportionate in regulating additional prison sentences. This research aims to find out the efforts of the Prosecutor as State Attorney in the effectiveness of returning compensation for State losses through the prosecution and execution of compensation for State losses resulting from criminal acts of corruption. Methode: This research is a normative-juridical type of research. Supported by 4 (four) approaches, philosophical approach, legislative approach, conceptual approach, and case approach. Result: The efforts of the State Attorney's Office in the field of prosecution by carrying out investigations, confiscation, prosecution, and confiscation of assets based on the judge's decision, auction, and execution, through the Prosecutor's Office's Asset Recovery Center (PPA) unit. Meanwhile, in the civil sector, by carrying out or facing a civil lawsuit by the suspect or a third party who objects to the action of confiscating property owned or under the control of the suspect. As in the investigation into the Jiwasraya and Asabri Corruption cases.

Problematics of Execution of Assets of Convictions in Efforts Recovery of State Losses

The management of State Property originating from State-Confiscated Goods and Gratification Goods normally differentiates the position and criteria of Execution Confiscated Goods originating from State-Confiscated Goods from Execution Confiscated Goods which are assets or belongings of the convict or the convict's family, assets related to the convict, including related corporations convicts, which are confiscated by the Executing Attorney or Asset Recovery Attorney to be sold or auctioned in order to implement the fine decision. This becomes a problem for the executing prosecutor in implementing the Judge's Decision which has permanent legal force to carry out the execution of the Additional Replacement Money Crime in article 18 paragraph 2 of the Non-Corruption Crime Law. This research focuses on the problems of implementing and reformulating Article 18 paragraph 2 of Law No. 31 of 1999 concerning Corruption Crimes in an effort to recover state losses. The normative juridical research method in this research is carried out by analyzing theories, concepts, legislation and court decisions which have a correlation with asset execution problems. Methodologically, the constructivism paradigm applies the hermeneutic method in the process of reaching the truth. The results of this research are: The principle of asset execution as a criminal implementation of additional compensation money in settling state losses is the confiscation of assets resulting from crime which is actually rooted in a very fundamental principle of justice, where a crime should not provide benefits for the perpetrator (crime should not pay). This means that a person must not profit from the illegal activities he carries out. In rem confiscation is an action by the state to take over assets through a court decision in a civil case based on stronger evidence that the assets are suspected to have originated from a criminal act or were used for a criminal act. Confiscation of assets in personam, which is an action directed at an individual person, therefore requires proof of the defendant's guilt first before seizing assets from the defendant. Assets confiscated from court executions under Article 18 paragraph (2) of the Corruption Crime Law cannot yet be made into state property, because it is not concretely stated that the confiscated goods are state confiscated goods.

Climate Change-Related Disaster Risk Mitigation through Innovative Insurance Mechanism: A System Dynamics Model Application for a Case Study in Latvia

This study explores how the System Dynamics modeling approach can help deal with the problem of conventional insurance mechanisms by studying the feedback loops governing complex systems connected to the disaster insurance mechanism. Instead of addressing the disaster’s underlying risk, the traditional disaster insurance strategy largely focuses on providing financial security for asset recovery after a disaster. This constraint becomes especially concerning as the threat of climate-related disasters grows since it may result in rising long-term damage expenditures. A new insurance mechanism is suggested as a solution to this problem to lower damage costs while safeguarding insured assets and luring new assets to be protected. A local case study utilizing a System Dynamics stock and flow model is created and validated by examining the model’s structure, sensitivity analysis, and extreme value test. The results of the case study performed on a city in Latvia highlight the significance of effective disaster risk reduction strategies applied within the innovative insurance mechanism in lowering overall disaster costs. The logical coherence seen throughout the analysis of simulated scenario results strengthens the established model’s plausibility. The case study’s findings support the innovative insurance mechanism’s dynamic hypothesis and show the main influencing factors on the dynamics within the proposed innovative insurance mechanism. The information this study can help insurance firms, policy planners, and disaster risk managers make decisions that will benefit local communities and other stakeholders regarding climate-related disaster risk mitigation.

Правовое регулирование института розыска, ареста и возврата активов, полученных преступным путем, как формы международного сотрудничества в Республике Ирландия

Introduction. Hodiernal circumstances in the world underline the sparkling growth of organized crime activity. Getting criminal assets is meant to be one the threats that demand rapid response and cooperation of law enforcement bodies and other relevant authorities and officials all over the world. Criminal Assets Bureau is deemed to be such an authority that is entitled to exercise such activity in the Republic of Ireland. Theoretical analysis. Criminal Assets Bureau is authorized to search, freeze and confiscate proceeds of crime. Civil proceedings in assets recovery is the essence of the Irish confiscation procedure. Bureau is empowered to be a plaintiff in pleadings. Therefore, the formal proceeding chain is the following: Criminal Assets Bureau, Garda Síochána, High Court, Ministry of Justice and Equality. Еmpirical analysis. The provisions of criminal justice acts and conventional laws,characterized by the principle of extraterritoriality, regulate the search, arrest and confiscation procedure in the Republic of Ireland. International cooperation and mutual legal assistance matters are vested in a number of laws based on relevant conventions. Results. Organized and joint activity of the Criminal Assets Bureau grants an ability to avoid excessive bureaucratization of the process and accelerate formal cooperation in criminal matters with relevant foreign central authorities and officials.

The Importance of Non-Conviction Based (NCB) Regulations For Asset Confiscation in Illegal Investment

The purpose of this research is to find out the importance of Non-Conviction Based (NCB) asset confiscation management in illegal investment cases in Indonesia. NCB is a method of confiscating assets that allows the state to confiscation assets without a court order on past criminal convictions. This article argues that controlling the NCB is important to ensure the effectiveness of asset recovery in illegal investment cases and to prevent law enforcement officials from abusing their powers. This research uses a qualitative approach and examines relevant laws and regulations, court decisions and academic writings along with a brief description of the situation in the European Union. The findings in this study indicate that the existing laws and regulations in Indonesia for implementing NCB are inadequate. Hence, asset expropriation in illegal investment cases cannot be carried out without a court order on past criminal decisions. This study recommends making a law on asset confiscation for illegal investment cases that can provide clear criteria and procedures in civil procedural law for the use of the NCB mechanism similar to those exist in a number of EU Member States.

The Jurisdiction of the Prosecutor's Office is to Confiscate Assets and Eradicate the Crime of Money Laundering

Simply put, money laundering is the criminal act of transforming the proceeds of crimes, or what is known as "dirty money," such as money obtained through smuggling, gambling, tax evasion, drug sales, or corruption, into a form that seems safe and legal for use. Both a conceptual and legislative approach are used in this normative research. Legal approach by examining Law Number 20 of 2001 concerning Amendments to Law Number 31 of 1999 concerning Eradication of Corruption Crimes and Law Number 8 of 2010 concerning Eradication of Money Laundering Crimes. The practice of seizing property used in illicit conduct with the goal of returning it is known as asset confiscation. The meaning of the term confiscation is connected to confiscation which is commonly used in the asset confiscation system for the purpose of returning asset recovery as used in UNCAC 2003

The Counteraction of Corruption in Indonesia Based On the International Agreement (Extradition) Between Indonesia and Singapore

In early 2022, Indonesia signed an extradition agreement with Singapore. This extradition agreement with Singapore is crucial because Singapore has been one of the destinations for Indonesian fugitives, particularly in corruption cases. The territory of Singapore, with its direct proximity to Indonesia and the visa-free arrangement for Indonesian citizens visiting Singapore, creates an environment where criminals can potentially use Singapore as a final destination or transit point for their illegal activities. This analysis examines the counteraction of corruption in Indonesia based on the international agreement (Extradition) between Indonesia and Singapore. The research adopts a normative legal research approach. The extradition agreement between Indonesia and Singapore will facilitate law enforcement authorities in Indonesia in resolving criminal cases where the perpetrators are located in Singapore. This allows law enforcement to take action against the criminals. Extradition also makes potential wrongdoers think twice before attempting to flee to another country, knowing that the destination country has an extradition agreement in place. In the fight against corruption, the Indonesia-Singapore extradition agreement is beneficial in preventing criminals from escaping to other countries, enabling the apprehension of wrongdoers, and facilitating the recovery of assets obtained through corruption.

The Belt and Road Initiative: conflict of laws and dispute resolution

Purpose This paper aims to determine the adaptability of China’s legal system in recognizing and enforcing foreign judgements in China. Design/methodology/approach Academic articles, case law and books are examined as are relevant reports by various regulatory authorities and organizations. Findings Historically, Chinese courts have strictly adhered to “de facto reciprocity”, which made it difficult for foreign judgements to be recognized and enforced in China. Fortunately, Chinese courts have since abandoned their rigid adherence to de facto reciprocity, and have instead, used flexible tests of reciprocity such as de jure reciprocity, reciprocal commitment and reciprocal understand/consensus. Accordingly, this would facilitate the recovery of stolen assets, as there is a lower threshold for the recognition and enforcement of a foreign judgement. Research limitations/implications There are limited data available in relation to the recognition and enforcement of foreign judgements pertaining to the recovery of stolen assets. Any discussions within this paper are based on the impressionistic observations of this author, which may not reflect the true state of affairs within the Belt and Road Initiative. Practical implications Those who are interested in examining the viability in recognizing and enforcing foreign judgements relating to stolen assets will have an interest in this topic. Originality/value The value of the paper is to demonstrate the difficulties in recognizing and enforcing foreign judgements in China in relation to stolen assets.

Analisis Perbandingan antara PP No. 99 Tahun 2012 dengan Permenkumham No. 07 Tahun 2022 Tentang Aturan atau Syarat Remisi terhadap Koruptor di Indonesia

Corruption has long been a serious problem in Indonesia. To fight corruption and enforce the law, the government has issued several regulations governing remission of corruptors. Two regulations that have had a significant impact in this regard are Presidential Regulation Number 99 of 2012 and Minister of Law and Human Rights Regulation Number 7 of 2022. To combat rampant corruption, the government has taken various steps, one of which is by implementing remission rules for corruptors. In this context, a comparative analysis between two important regulations is very relevant, namely Presidential Regulation Number 99 of 2012 and Regulation of the Minister of Law and Human Rights Number 7 of 2022 concerning Rules or Provisions for Remission of Corruptors in Indonesia. Through an objective and critical approach, this journal will present a comprehensive analysis regarding the comparison between the two regulations. In analyzing it, we will look at important aspects such as the criteria for remission recipients, the requirements that must be met, as well as the social and legal impacts of implementing these regulations. This study uses a normative juridical approach, which examines the problem based on the applicable laws and regulations regarding the rules or conditions for remission of corruptors in Indonesia. Increasing these conditions aims to provide stricter sanctions against perpetrators of corruption. This latest regulation provides stricter and stricter sanctions against corruptors, with additional requirements such as payment of fines and compensation, as well as recovery of assets obtained illegally. This is expected to provide a deterrent effect on perpetrators of corruption and strengthen law enforcement in Indonesia.

The Practical Experience of Financial Investigations in the Republic of Kazakhstan: Problems of Searching and Returning Assets from Abroad

The article discusses the practical experience, prospects and vectors of development of financial investigations in Kazakhstan, the problems associated with the search and return of assets located abroad. The authors focus on the main obstacles faced by law enforcement agencies in the investigation of financial crimes, as well as existing mechanisms for the return of fraudulently acquired funds from abroad. The article highlights examples of successful and unsuccessful mechanisms for asset recovery, provides recommendations for improving the situation in this area.

THE LEGAL PROTECTION FOR VICTIMS OF CRIMINAL ACTS IN BINOMO TRADING FRAUD

The objective of this study is to analyze the recovery of assets and the protection of victims in cases of Binomo trading fraud under Indonesian criminal law. The research methodology employed is normative legal research, utilizing a literature-based approach. The findings of this study reveal that the decision made by the Panel of Judges in case number 1240: Pid.Sus/2022/PN.Tng was deemed unjust for the victims, leading to an appeal hearing resulting in decision number 117/Pid.Sus/2022/PT.BTN. According to this court decision, the confiscated evidence in the Indra Kenz case was to be returned to the victims through the United Indonesian Traders Association. However, the process of returning the evidence encountered complications due to internal conflicts among the victim association members. As a result, there is currently no clarity regarding the completion of the restitution of the victims' losses. The government, through the LPSK, regulates the restitution of victims' losses as stipulated in Perma Number 1 of 2022. Nevertheless, the LPSK is not involved in the process of returning the victims' losses, which is instead handled by the United Indonesian Traders Association.

The Recovery of State Assets Due to Bankruptcy in State-owned Enterprises

This research intended to examine the elements of state loss on Indonesian corruption regulations and to assess the effort of asset recovery concerning state loss, resulting from corruption based on Indonesian law. This was normative legal research employing the statutory approach, the conceptual approach, the fact approach, and the case approach. The study revealed that the components of state loss consist of actual shortages of cash, securities, and goods; it was caused by illicit actions, either intentionally or negligently; and losses whose amount can be calculated based on the findings of the authorized agency or appointed public accountant. In the Indonesian legal system, asset recovery initiatives can be analyzed through the lens of both criminal and administrative laws. According to criminal law, asset recovery can occur in multiple stages of the criminal justice system, whereas under administrative law, asset recovery must comply with Article 34 of Government Regulation No. 48 of 2016 on the procedures for imposing administrative sanctions on government officials.
 Keywords: bankruptcy, state assets, state-owned enterprises

Legal Construction of Asset Recovery for Crime of Corruption in Indonesia

Indonesia has made efforts to prevent and eradicate criminal acts. However, the reality is that corruption is still a problem in Indonesia. Corruption occurs in various aspects of state life and institutions, not only central government institutions but also regional governments. Corruption has bad impacts ranging from lowering the level of people’s welfare, destroying morality, and the foundations of national resilience. As time goes by, acts of corruption are carried out in various ways and are increasingly organized. More strategic efforts are needed to deal with this because corruption does not only talk about criminal acts and the perpetrators but is also related to the results of that corruption. The first question is how is corruption in Indonesia today? Second, what is the proper legal reconstruction to deal with it? Then to answer these problems, this research was made using an analytical descriptive method and a normative juridical approach by adding a set of data, one of which was from the n Vivo application. According to this study, there is still a lot of corruption in Indonesia, and because the state must also receive the benefits of criminal acts of corruption, there is a need for special rules that can carefully monitor in order to carry out asset recovery.
 Keywords: construction, corruption asset recovery

Director's Accountability for the Company's Sales Results and Commissioner's Actions in Asset Recovery

This study examines directors’ accountability for company sales results and commissioners’ actions in asset recovery regarding an embezzlement case involving Conti Chandra, a Director at PT. Bangun Mega Semesta (BMS) in Hotel Batam City Condotel (BCC). Relevant court decisions include Supreme Court Decision No. 567K/PID/2016, Pekanbaru High Court Decision No. 212/Pid.B/2015, and Batam District Court Decision No. 321/Pid.B/2015. It focuses on two main issues: corporate managers’ accountability based on Law No. 40 of 2007 on limited liability companies and criminal liability for “embezzlement crime in position” within a limited liability company. The study uses a normative legal research method with a descriptive approach, relying on secondary data and qualitative analysis. Findings indicate corporate managers’ accountability during general meetings of shareholders. Criminal liability for embezzlement relates to directors’ fiduciary duty to shareholders, requiring prudence, responsibility, and good faith. Two recommendations are proposed: First, The Indonesian government should revise the limited liability company law on holding directors and commissioners accountable for neglecting management and supervision duties and emphasizing fiduciary duty. Second, the Directors of Batam City Condotel should adhere to fiduciary duty principles under the board of commissioners’ supervision.
 Keywords: commissioners actions, directors, embezzlement

Belt and Road Initiative: legal mechanisms to recover stolen assets

PurposeThis paper aims to determine the types of legal mechanisms that authorities can use to recover stolen assets for and from China.Design/methodology/approachNewspaper articles and books are examined as are relevant reports by various regulatory authorities and academic institutions.FindingsThe effectiveness of legal mechanisms in the recovery of stolen assets may be affected by issues such as the difficulties in tracing illicit funds, the ambiguous nature of “value” as well as the rise in technology.Research limitations/implicationsThere are limited data available in relation to the prevalence of corrupt officials along the Belt and Road Initiative and the statistical success in the recovery of stolen assets. Any discussions within this paper are based on the impressionistic observations of this author, which may not reflect the true state of affairs of the Belt and Road Initiative.Practical implicationsThose who are interested in examining how authorities could recover stolen assets from and for China will have an interest in this topic.Originality/valueThe value of the paper is to demonstrate the difficulties in recovering stolen assets for and from China.

ОПЫТ США, ШВЕЙЦАРИИ И ВЕЛИКОБРИТАНИИ ПО ПРОТИВОДЕЙСТВИЮ НЕПРАВОМЕРНОМУ ВЫВОДУ АКТИВОВ

Most developed countries have strict anti-money laundering laws that also help identify and prevent illegal asset withdrawals. For example, the Bank Secrecy Act in the United States and similar laws in other countries require financial institutions to exercise due diligence to prevent such practices. As part of the fight against money laundering and terrorist financing in developed countries, the fight against the illegal transfer of assets abroad is intensifying. This article examines the experience of three countries: the United States of America, Switzerland and the United Kingdom. As part of the work, approaches to countering the illegal movement of assets, measures aimed at asset recovery, as well as the legislative framework and its development in this area were studied. The application of the strategy of combining legal frameworks, international cooperation and the use of refund mechanisms; the main directions of the legislative and regulatory framework; laws on bank secrecy; on combating corruption, on corporate transparency is considered. Attention is paid to the issues of civil and criminal confiscation of property, investigative tools designed to combat suspicions of illegal enrichment, which require individuals to explain the origin of assets that seem disproportionate to their known legitimate income. As a result of the analysis of the experience of the United States of America, Switzerland and the United Kingdom, it was proposed to introduce best practices into the activities of the Russian Federation.

Peculiarities of Proceedings in Cases on Imposition of Sanctions for Recovery of Assets Belonging to an Individual or Legal Entity to the State Revenue

Peculiarities of Proceedings in Cases on Imposition of Sanctions for Recovery of Assets Belonging to an Individual or Legal Entity to the State Revenue

Key Factors to Increase the Role of the Prosecutor’s Stolen Asset Recovery Agency in Indonesia: Opportunities and Challenges

Key Factors to Increase the Role of the Prosecutor’s Stolen Asset Recovery Agency in Indonesia: Opportunities and Challenges

Regulation of Asset Recovery in the Judicial System in Indonesia

Regulation of Asset Recovery in the Judicial System in Indonesia

Improving the accounting of assets held under economic management

This Article reviews the main issues that arise while accounting for publicly owned assets under the economic management of public institutions, state- and municipal-owned enterprises, and of other similar entities. Such issues are related to the way of documenting, recognizing, valuating, and setting the useful life span of assets, as well as registering the assets received under economic management. In particular, this Article tackles some accounting aspects related to the subsequent costs incurred for the asset recovery at the expense of the entity's own resources, subsidies and funds received from the public authority that transferred the assets into economic management. In order to address the issues of accounting for favorable and unfavorable differences related to the operations of returning the aforementioned assets, there have been specified the categories of revenues and expenses to which they need to be reported. Likewise, some fiscal aspects of transactions with assets held under economic management have been investigated, including the specificities of VAT application, deduction of expenses and taxation of revenues recorded following the performance of the above-mentioned transactions. The basic research methods used: analysis and synthesis, induction and deduction, interpretation and comparison, review of normative acts which enabled us to substantiate some essential findings for the resolution of relevant research-related issues. The authors’ recommendations will lead to improving the accounting for the assets held under economic management, ensuring a higher degree of veracity and comparability of the information disclosed in financial statements.