Limited Company Beneficial Owner Liability in Criminal Acts of Corruption

DOI

10.2991/assehr.k.211223.094How to use a DOI?

Keywords

Beneficial Owner; Limited Liability Company; Corruption

Abstract

Corruption crimes can be committed by forming LLCs for the express purpose of commissioning corruption crimes and then disguising or disguising the proceeds of such crimes for profit. As was later determined by international bodies such as the OECD, the FATF and the G20, LLC was used by the so-called beneficial owner. Determining the beneficial owner of an LLC’s liability for illegal conduct is not an easy task, but it is not impossible. The purpose of this study was to assess how beneficial ownership systems are implemented both internationally and locally, and how the beneficial owner should be held accountable for all criminal activity committed by the LLC. The researcher identifies and examines the difficulties qualitatively using a normative research approach based on statutory, case-related and conceptual approaches. This study concluded that the OECD Model Treaty, the FATF Guidelines and the G20 High Level Principles all contain a provision to determine the beneficial owners of international organizations. In Indonesia, it has been incorporated into several laws, including the Investment, Limited Liability Companies, and General Provisions and Tax Procedures Acts, as well as OJK Regulations, Presidential Decree, and the Minister of Law and Human Rights Regulations. To answer the beneficial owner of an LLC for a corrupt act, the LLC must first be identified as a suspect/accused so law enforcement officers can investigate and seize assets. Once this has been completed, the prosecution can arrest these perpetrators using the means of the anti- money laundering act.

Copyright

© 2021 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Fernando
PY  - 2021
DA  - 2021/12/24
TI  - Limited Company Beneficial Owner Liability in Criminal Acts of Corruption
BT  - Proceedings of the International Joint Conference on Arts and Humanities 2021 (IJCAH 2021)
PB  - Atlantis Press
SP  - 544
EP  - 552
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.211223.094
DO  - 10.2991/assehr.k.211223.094
ID  - 2021
ER  -