The Convergence of Classical Punishment in Money Laundering: Follow the Money Principle Using Blockchain Approach

Efendi Lod Simanjuntak; Yuris  Trinaili; Purwono; Muhamad Helmi  Md Said

doi:10.58829/lp.12.1.2025.298

Authors

Efendi Lod Simanjuntak Universitas Prasetiya Mulya, Indonesia
Yuris Trinaili Universitas Harapan Bangsa, Indonesia
Purwono Universitas Harapan Bangsa, Indonesia
Muhamad Helmi Md Said University Kebangsaan Malaysia, Malaysia

DOI:

https://doi.org/10.58829/lp.12.1.2025.298

Keywords:

Follow the Money, Asset Recovery, Blockchain, Money Laundering, Corporal Punishment

Abstract

The application of corporal punishment to criminals is crucial for ensuring justice and legal certainty, as well as maintaining public order. However, in law enforcement regarding money laundering, there has been a shift in focus to asset recovery, based on the “follow the money” principle, which prioritizes the recovery of the proceeds of crime over punishing the perpetrator. This approach has the potential to cause disruption, as recovery of losses should only occur after the perpetrator is found guilty under criminal law. In the absence of adequate asset recovery regulations, blockchain can be a solution to strengthen the asset recovery process. This technology provides transparency and accountability in tracking asset flows and ensures data permanence. Blockchain enables more efficient and secure asset recovery, supporting a faster recovery process, and reducing the potential for compromise. Reconciling asset recovery approaches with corporal punishment is crucial for creating a balance in the justice system that goes beyond maintaining peace.

References

Abidin, RB Muhammad Zainal, Mahendra Suhartono, and Idham Halik Nussy. “Disoriented Law Enforcement Against Corporations Commit Money Laundering.” Jurnal Hukum dan Kenotariatan 7, no. 2 (2023): 78-93.

Aglia, Arla, Moch Panji Agung Saputra, and Setyo Okta Yohandoko. “The Role of Pancasila as a Political Ethical System: Understanding Indonesia’s Ideological Foundation and Moral Guidance.” International Journal of Humanities, Law, and Politics, 2, no. 3 (2024), 45–98.

Agrawal, Ankur, Swati Bansal, Monica Agarwal, Reema Agarwal, and Mohammad Rumzi Tausif. “Transformation of Asset Management Systems Through Blockchain.” In Utilizing Blockchain Technologies in Manufacturing and Logistics Management. Pennsylvania: IGI Global Scientific Publishing, 2022.

Akinrotimi, Akinyemi Omololu. “Legal ramifications of blockchain technology.” In Decentralised Internet of Things: A Blockchain Perspective, pp. 217-230. Cham: Springer International Publishing, 2020.

Alexander, Kern. “The international anti‐money‐laundering regime: the role of the financial action task force.” Journal of Money Laundering Control 4, no. 3 (2001): 231-248.

Alipour, Hassan. “Money Laundry as a Threat to National Security.” Strategic Studies Quarterly 9, no. 32 (2006): 355-395.

Al-Tawil, Tareq Na’el. “Anti-money laundering regulation of cryptocurrency: UAE and global approaches.” Journal of Money Laundering Control 26, no. 6 (2023): 1150-1164.

Amien, Miska. “Causa Materialis Pancasila Menurut Notonagoro.” Jurnal Filsafat 16, no. 1 (2006): 18-26.

Andenaes, Johannes. “General prevention revisited: Research and policy implications.” The Journal of Criminal Law and Criminology (1973-) 66, no. 3 (1975): 338-365.

Apriani, Karlina Lina, Ahmad Raji Hidayat, Rato Eko Hendriyadi, Wahyu Hamdani, and Surawijaya Surawijaya. “Criminal Law Politics: Corruption Eradication Strategy Through an Integrative Approach.” Unram Law Review 4, no. 1 (2020): 33-39.

AS Mendrofa, Melky. “Legal Study of Asset Confidentiality Without Punishment as An Alternative for Providing Justice for the State and Persons of Corruption.” International Journal of Law and Society 1, no. 2 (2024): 44–55.

Awasthi, Vimal. “Blockchain Revolution in Asset Management: A Comprehensive Analysis and Implementation Framework.” Interantional Journal of Scientific Research in Engineering and Management, 8, no. 5 (2024): 1–5.

Azmi, Ilima Fitri, and Alih Aji Nugroho. “Anti-corruption system 4.0: The adoption of blockchain technology in the public sector.” Integritas: Jurnal Antikorupsi 9, no. 1 (2023): 93-108.

Balakrishnan, Anandaganesh, Varun Jain, Pradeep Chintale, Sivanagaraju Gadiparthi, and Madhavi Najana. “Blockchain Empowerment in Sanctions and AML Compliance: A Transparent Approach.” International Journal of Computer Trends and Technology 72 no. 5 (2024): 11-26.

Basaran-Brooks, Bahriye. “Money laundering and financial stability: does adverse publicity matter?.” Journal of Financial Regulation and Compliance 30, no. 2 (2022): 196-214.

Bjelajac, Zeljko, and Momcilo B. Bajac. “Blockchain technology and money laundering.” Law Theory & Prac. 39, no. 3 (2022): 21-56.

Boonin, David. The problem of punishment. Cambridge: Cambridge University Press, 2008.

Boong, Vicariya Retnowati, Joshua Evandeo Irawan, Christian Ibrahim, and Steven Jonathan. “Asset Return in Money Laundering.” Corruptio 4, no. 2 (2023): 127-136.

Caruso, Gregg D. “Justice without retribution: An epistemic argument against retributive criminal punishment.” Neuroethics 13, no. 1 (2020): 13-28.

Chandra, Tofik Yanuar, Mohammad Belayet Hossain, Mohd Zakhiri Md Nor, and Mohammad Abu Taher. “Economic Opportunities of Offshore Banking and Regulatory Responses to Money Laundering Risks: A Comparative Study.” Jurnal Hukum 40, no. 2: 153-173.

Charles, Iwan Roy. “Analysis of Article 69 of Law Number 8 of 2010 concerning Prevention and Eradication of the Crime of Money Laundering in the Perspective of Legal Certainty.” Melayunesia Law 6: 59-84.

Cherednichenko, Olga, Iryna Kyrychenko, Glib Tereshchenko, Denys Miand, and Serhii Pylypenko. “Comparison of Blockchain-Based Data Storage Systems.” In COLINS (3), pp. 134-144. 2024.

de Caria, Riccardo. “Blockchain-based money as the ultimate challenge to sovereignty: Reflections from a public economic law perspective.” European Journal of Comparative Law and Governance 6, no. 2 (2019): 131-145.

De Keijser, J. W. Punishment and Purpose: From Moral Theory to Punishment in Action, dissertatie. Leiden: Eigen beheer (2000).

Dyntu, Valeriia, and Oleh Dykyi. “Cryptocurrency in the system of money laundering.” Baltic Journal of Economic Studies 4, no. 5 (2018): 75-81.

Fauzia, Ana, and Fathul Hamdani. “Analysis of the implementation of the non-conviction-based concept in the practice of asset recovery of money laundering criminal act in Indonesia from the perspective of presumption of innocence.” Jurnal Jurisprudence 11, no. 1 (2022): 57-67.

Feltovic, Milan. “Utilizing Blockchain Technology to Modernize Police Operations: Ensuring Security, Transparency, and Efficiency.” Eximia 13 (2024): 661-672.

Flora, Henny Saida, Maidin Gultom, Parulian Samosir, Khomaini Khomaini, and Bobur Sobirov. “The Urgency of Restorative Justice in Renewing Criminal Law.” Jurnal Hukum 40, no. 2 (2024): 75-87.

George, E. P. E., C. Idemudia, and A. B. Ige. “Blockchain technology in financial services: enhancing security, transparency, and efficiency in transactions and services.” Open Access Res J Multidiscip Stud 8, no. 1 (2024): 26-35.

Gikonyo, Constance. “Criminal Forfeiture under Kenya’s Proceeds of Crime and Anti-Money Laundering Act: Nature and Challenges.” African Journal of International and Comparative Law 28, no. 4 (2020): 657-676.

Goldbarsht, Doron. “Adapting confiscation and anti-money laundering laws to the digital economy: exploring the Australian interplay between proceeds and technology.” Journal of Money Laundering Control 27, no. 3 (2024): 472-488.

Grupp, Stanley E., ed. Theories of punishment. Bloomington, IN: Indiana University Press, 1971.

Gump, Akin, and Christopher Leonard. “Blockchain:: regulating the future of finance.” International financial law review 35, no. 13 (2016): 1.

Hamzah, Andi. Sistem Pidana dan Pemidanaan Indonesia dari retribusi ke reformasi. Jakarta: Pradnya Paramita, 1986.

Handayani, Sri Lestari. “Assets Recovery of Money Laundering Criminal Acts: A Study of Restoring Assets for Money laundring Criminal Acts Related in the Account of Overseas Bank.” International Journal of Social Science and Human Research, 4, no. 7 (2021): 35-43.

Haris, B. S. “Added value and challenges of the follow-the-money approach in environmental crimes. AML.” CFT Journal: The Journal of Anti Money Laundering and Countering The Financing of Terrorism 2, no. 2 (2024): 111-125.

Harding, Christopher, and Richard W. Ireland. Punishment: Rhetoric, rule, and practice. Oxfordshire: Routledge, 2022.

He, Ping. “A typological study on money laundering.” Journal of Money Laundering Control 13, no. 1 (2010): 15-32.

Hidayah, Fenty Nur, Marchanida Firly Nabila, Magdalena Triyas Maharani, and Anggra Prayundhika Herani. “Analisis Yuridis Terhadap Kasus Pencucian Uang (Money Laundering): Perspektif Hukum Perbankan Indonesia.” JOURNAL SAINS STUDENT RESEARCH 3, no. 1 (2025): 143-154.

Hryniewicz-Lach, Elżbieta. “Improving asset confiscation: in the quest for effective and just solutions.” In ERA Forum. 25, no. 2, (2024): 231-247.

Ilato, Fadel, Abdul Majid, and Setiawan Noerdajasakti. “Criminal Action Without Proven in Money Laundering in Indonesia.” Jambura Law Review 3 (2021): 180-197.

Jain, Aastha, Soumyajit Das, Anand Singh Kushwah, Tushar Rajora, and Shagun Saboo. “Blockchain-Based Criminal Record Database Management.” In 2021 Asian Conference on Innovation in Technology (ASIANCON). New York City: IEEE, 2021.

Jannah, Rohmatul, Kania Putri Riyandra, Najwa Aulia Widyaningrum, and Athalla Fikra Yazdaniar. “Efektivitas Mekanisme Pencegahan dan Pemberantasan Tindak Pidana Pencucian Uang dalam Perspektif Hukum Positif Indonesia.” Media Hukum Indonesia (MHI) 3, no. 1 (2025): 456-485.

Joeroy, Jeane N. Sally, and Wiratno Wiratno. “Implementation of Follow the Money in Eradicating Corruption and Money Laundering.” International Journal of Social Health 2, no. 5 (2023): 249-264.

Joshi, Shashank, and Arhan Choudhury. “Tokenization of real estate assets using blockchain.” International Journal of Intelligent Information Technologies (IJIIT) 18, no. 3 (2022): 1-12.

Kant, Immanuel. Philosophy of Law. Cambridge: Cambridge University Press, 1797.

Koutsoupia, Victoria. “Challenges of the Use of Virtual Assets in Money Laundering.” Nordic Journal of European Law 6, no. 4 (2023): 53-78.

Kumar, Birla Naveen, K. Sriram Siddartha, and M. Harshitha Reddy. “An Implementation of Blockchain Technology in Forensic Evidence Management.” Sriram and Reddy, M. Harshitha, An Implementation of Blockchain Technology in Forensic Evidence Management (January 01, 2025) (2025).

Kumar, Dinesh, Sunil Kumar, and Akashdeep Joshi. “Assessing the viability of blockchain technology for enhancing court operations.” International Journal of Law and Management 65, no. 5 (2023): 425-439.

Kurniawan, Lendra Dika, Alfin Dwi Rahmawan, and Jeanne Darc Noviayanti Manik. “Kajian Kriminologi Terhadap Pengunaan Mata Uang Kripto Sebagai Media Pencucian Uang.” Jurnal Suara Hukum 5, no. 1 (2023): 89-101.

Lasmadi, Sahuri, Usman Usman, Elly Sudarti, and Nys Arfa. “Asset Seizure of Money Laundering Crimes Arising from Corruption in the Perspective of Legal Certainty and Justice.” Pandecta Research Law Journal 18, no. 2 (2023): 352-374.

Levi, Michael. “Money laundering and its regulation.” The Annals of the American Academy of Political and Social Science 582, no. 1 (2002): 181-194.

Littewina, Mutiara, Andry Alamsyah, Eva Nurhazizah, and Tanti Ruwani. “Land Certificate Authenticity Using Blockchain Technology in Indonesia.” In 2024 12th International Conference on Information and Communication Technology (ICoICT). New York City: IEEE, 2024.

Mamulak, N. M. R., M. Miswadi, J. Julinaldi, R. Komarudin, and M. Syahputra. “Blockchain Technology: Unlocking New Frontiers in Data Management and Transparency.” Global International Journal of Innovative Research 2, no. 9 (2024): 2257-2270.

Manik, Md Motaleb Hossen, Anite Halim Sagor, Md Ahsan Habib, Md Mossadek Touhid, Tanim Ahmed, Md Zabirul Islam, and Fabliha Haque. “Redefining crime record storage: An advanced architecture harnessing the power of blockchain technology.” In 2023 26th International Conference on Computer and Information Technology (ICCIT). New York City: IEEE, 2023.

Maulidah, Khilmatin, and Ratna Kumala Sari. “The Urgency of the Follow the Money Approach in Law Enforcement Efforts Against Money Laundering Resulting from Corruption.” Sapientia Et Virtus 9, no. 2 (2024): 446-460.

McCarthy, Killian J., Peter van Santen, and Ingo Fiedler. “Modeling the money launderer: Microtheoretical arguments on anti-money laundering policy.” International Review of Law and Economics 43 (2015): 148-155.

Meiryani, Sani Muhamad Isa, and Johan Muliadi Kerta. “Money laundering in corruption cases in Indonesia.” Journal of Money Laundering Control 27, no. 1 (2024): 127-138.

Muchtar, Musdayanti, Abd Asis, and Audyna Mayasari Muin. “Proving of Predicate Crimes in Cases of Money Laundering Crimes.” Alauddin Law Development Journal 5, no. 2 (2023): 410-416.

Muladi, Arief, and Barda Nawawi. Teori-teori dan kebijakan Pidana. Bandung: Penerbit Alumni, 1998.

Muladi, Barda Nawawi Arief. Teori-teori dan Kebijakan Pidana, Bandung: Bandung, PT. 2010.

Muladi. Lembaga Pidana Bersyarat (3rd ed.). Bandung: Alumni, 2004.

Mulyati, Nani, and Aria Zurnetti. “Asset Recovery as a Fundamental Principal in Law Enforcement of Corruption by Corporations.” Andalas International Journal of Socio-Humanities 4, no. 1 (2022): 51-60.

Nanda Hutama, Wisnu, and Dewi Gunawati. “Implementation of the Confiscation and Auction of Assets Convicted in the Jiwasraya Corruption Case to Recover State Losses.” International Journal of Multicultural and Multireligious Understanding, 11, no. 5 (2024): 470.

Nawawi, Muladidan Barda. “Teori-teori dan kebijakan pidana.” Bandung: Alumni (1992).

Notonagoro, Pembukaan Undang-Undang Dasar. “dalam Pancasila Dasar Falsafah Negara.” Cetakan Ketujuh, Jakarta: Bina Aksara (1988).

Oad, Ammar, Abdul Razaque, Askar Tolemyssov, Munif Alotaibi, Bandar Alotaibi, and Chenglin Zhao. “Blockchain-enabled transaction scanning method for money laundering detection.” Electronics 10, no. 15 (2021): 1766.

Olatoye, Funmilola Olatundun, Oluwafunmi Adijat Elufioye, Chinwe Chinazo Okoye, E. E. Nwankwo, and J. O. Oladapo. “Blockchain in asset management: An extensive review of opportunities and challenges.” International Journal of Science and Research Archive 11, no. 1 (2024): 2111-2119.

Packer, Herbert. The limits of the criminal sanction. Califronia: Stanford university press, 1968.

Pompe, Sebastian. Iktisar Ketentuan Pencegahan Dan Pemberantasan Tindak Pidana Pencucian Uang. Jakarta: NLRP, 2011.

Pompe, Willem Petrus Joseph. Handboek van het Nederlandse strafrecht. Apeldoorn: Tjeenk Willink, 1959.

Puanandini, Dewi Asri, Halena Taufiqurrahmawati, and Ahmad Fauzy Nurazmy Azhari. “Strategi pencegahan dan penanggulangan tindak pidana pencucian uang dalam perspektif hukum dan kebijakan nasional.” Public Sphere: Jurnal Sosial Politik, Pemerintahan dan Hukum 3, no. 2 (2024): 356-379.

Purwanto, Hery, and Siti Ummu Adillah. “The Recovery of Assets Results of Corruption Through Additional Criminal Payment of Replacement Money.” Law Development Journal 3, no. 2 (2021): 261-271.

Purwoto, Purwoto. “Efforts to Prevent Criminal Acts of Money Laundering Using Penal Policy Measures.” Indian Journal of Forensic Medicine & Toxicology 14, no. 4 (2020).

Riswanto, Riswanto, Muhammad Akbar Rachmatullah, Alip Rahman, and Diky Dikrurahman. “Legal Aspects In Handling Money Laundering Cases In Indonesia.” Asian Journal of Social and Humanities 2, no. 8 (2024): 1818-1823.

Robinson, Paul H. “A Truce in Criminal Law’s Distributive Principal Wars.” New Criminal Law Review 23, no. 4 (2020): 565-583.

Rossi, Pellegrino. Traité de droit pénal. Américaine: Société typographique belge, 1843.

Rusianto, Rusianto, Rommy Hardyansah, and Didit Darmawan. “Application of the Elements of Money Laundering Crime in Indonesian Jurisprudence.” Bulletin of Science, Technology and Society 2, no. 3 (2023): 44-50.

Saleh, Roeslan. Beberapa asas-asas hukum pidana dalam perspektif. Jakarta : Aksara Baru, 1981.

Saleh, Roeslan. Suatu Reorientasi dalam Hukum Pidana. Jakarta: Aksara Baru, 1978.

Sam, Yolanda Adelia Bella Lestari, Messy Rachel Mariana Hutapea, and Suyudi Setiawan. “Legalitas Cryptocurrency Dalam Tindak Pidana Kejahatan Pencucian Uang.” DiH: Jurnal Ilmu Hukum 3, no. 4 (2022): 108-120.

Samosir, C. Djisman. Fungsi pidana penjara dalam sistem pemidanaan di Indonesia. Jakarta: Binacipta, 1992.

Santoso, Prijo and Bambang Pujiono. “The Jurisdiction of the Prosecutor’s Office is to Confiscate Assets and Eradicate the Crime of Money Laundering.” Jurnal Multidisiplin Madani, 4, no. 1 (2024): 180–185.

Sari, Nani Widya, Henny Nuraeny, Oksidelfa Yanto, Guntarto Widodo, and Bhanus Prakash Nunna. “Relationship Between Money Laundering Crime and Corruption Crime as Originate Crime from the Criminal Perspective.” International Journal of Integrative Sciences 2, no. 3 (2023): 73-92.

Setiawan, Andrie Wahyu, M. Fakih, Ahmad Irzal Fardiansyah, and H. S. Tisnanta. “Problematics of Execution of Assets of Convictions in Efforts Recovery of State Losses.” Sch Int J Law Crime Justice 7, no. 2 (2024): 91-96.

Sherimon, P. C., Vinu Sherimon, Jeff Thomas, and Kevin Jaimon. “A Blockchain Framework for Investment Authorities to Manage Assets and Funds.” In International Conference on Big Data Innovation for Sustainable Cognitive Computing, pp. 217-226. Cham: Springer Nature Switzerland, 2022.

Sicignano, Gaspare Jucan. “Money laundering using cryptocurrency: the case of bitcoin!.” Athens JL 7, no. 4 (2021): 253-279.

Sitompul, Ariman, and Aisyah Aisyah. “Fair Law in Money Laundering with the Origin of Corruption with the Concept of Asset Seizure.” International Asia of Law and Money Laundering (IAML) 3, no. 3 (2024): 156-162.

Sittlington, Samuel, and Jackie Harvey. “Prevention of money laundering and the role of asset recovery.” Crime, Law and Social Change 70, no. 4 (2018): 421-441.

Soenmandjaja SD, Tb., Hono Sejati, and Lamijan Lamijan. “Law Enforcement of Digital Asset Confiscation in Money Laundering Crimes.” Jurnal Ekonomi Teknologi dan Bisnis (JETBIS) 3, no. 8 (2024): 1034-1043.

Sproat, Peter A. “To what extent is the UK’s anti‐money laundering and asset recovery regime used against organised crime?.” Journal of Money Laundering Control 12, no. 2 (2009): 134-150.

Sun, Yujing, Hao Xiong, Siu Ming Yiu, and Kwok Yan Lam. “Bitanalysis: A visualization system for bitcoin wallet investigation.” IEEE Transactions on Big Data 9, no. 2 (2022): 621-636.

Suwitra, I. Ketut, Alwan Hadiyanto, and Ciptono Ciptono. “Pencegahan Tindak Pidana Pencucian Uang Melalui Lintas Internasional Dalam Perspektif Undang-Undang Tindak Pidana Pencucian Uang.” Jurnal USM Law Review 7, no. 2 (2024): 960-973.

T. Paripurna, Garda, and M. Natsir Kongah. Rezim Anti Pencucian Uang Indonesia: Perjalanan 5 Tahun. PPATK. Jakarta: Pustaka Juanda Tiga Lima, 2007.

Talha, Muhammad. “Blockchain in Accounting: Transforming Transparency and Security in Financial Records.” Dandao Xuebao/Journal of Ballistics 36, no. 1 (2024): 63-73.

Taufiq, Abigail Ahmad, Riska Andi Fitriono, Nabilla Yogy Irawan, Anisa Fisa Bilhillah. “Pancasila as a Political Ethic.” International Journal of Religion Education and Law 1, no. 2 (2022): 111-115.

Usman Kemal, Muhammad. “Anti-money laundering regulations and its effectiveness.” Journal of Money Laundering Control 17, no. 4 (2014): 416-427.

Van Veen, Vincent, and Cameron S. Carter. “The anterior cingulate as a conflict monitor: fMRI and ERP studies.” Physiology & behavior 77, no. 4-5 (2002): 477-482.

Vemuri, Vijay K. “Blockchain: a practical guide to developing business, law, and technology solutions.” (2018): 161-163.

Wardani, Andhira, Mahrus Ali, and Jaco Barkhuizen. “Money laundering through cryptocurrency and its arrangements in money laundering act.” Lex Publica 9, no. 2 (2022): 49-66.

Wu, Jiajing, Dan Lin, Qishuang Fu, Shuo Yang, Ting Chen, Zibin Zheng, and Bowen Song. “Toward understanding asset flows in crypto money laundering through the lenses of Ethereum heists.” IEEE Transactions on Information Forensics and Security 19 (2023): 1994-2009.

Zhou, Fangfang, Yunpeng Chen, Chunyao Zhu, Lijia Jiang, Xincheng Liao, Zengsheng Zhong, Xiaohui Chen, Yi Chen, and Ying Zhao. “Visual analysis of money laundering in cryptocurrency exchange.” IEEE Transactions on Computational Social Systems 11, no. 1 (2023): 731-745.