Medan. Anti-money laundering (AML) law in Indonesia—specifically Undang‑Undang No. 8 Tahun 2010 tentang Pencegahan dan Pemberantasan Tindak Pidana Pencucian Uang (the “Money Laundering Prevention Act”)—is increasingly relevant in the face of technology-based financial crime.
In the Act’s preamble it is stated that money-laundering practices threaten economic stability, the integrity of the financial system, and the foundations of society, nation, and state. According to research, as tech advances, laundering methods evolve — one controversial vector is online gambling profit disguised through digital finance services such as online lending.
This article explores how the Indonesian AML regime is deployed in cases of online gambling, how digital lending (or illegal “pinjol”) platforms play a role, and what lessons can be drawn from international precedents.
Online Gambling & Digital Lending: A Dual Threat
The rise of online gambling (gambling via the internet) in Indonesia has coincided with a surge in illegal online lending platforms. These two phenomena are interconnected. Many online gamblers, when they run out of funds, turn to unregulated digital loans to stay in play — deepening financial vulnerability.
In remarks by Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK) head Ivan Yustiavandana, enforcement aimed at online gambling also serves the goal of rescuing communities from the spiralling risks of illegal loans, drugs, fraud and prostitution — all of which often intertwine with gambling addiction.
In this context, AML law serves to cut off the channels that criminals exploit — by enabling the financial system to detect, report and block the transformation of gambling-proceeds into “clean” assets or by funnelling them into digital credit schemes.
Case Study: “Apin BK” – Online Gambling Boss & Money Laundering
A telling Indonesian case is that of Jonni alias Apin BK — identified as an online gambling kingpin in North Sumatra. He was charged under Articles 3 and 4 of the Money Laundering Prevention Act alongside gambling offences.
Investigations revealed a set of classic laundering techniques:
- Huge transactions through a commercial bank (hundreds of billions of rupiah) that were not flagged as suspicious by the bank.
- Use of third-party accounts and shadow companies (shell companies) for layering the illicit funds before asset purchases.
- Taking out loans from a bank (e.g., Rp 14.1 billion) with collateral worth only a fraction of that amount (Rp 3.4 billion), thereby masking illegal gambling profit as legitimate credit.
The outcome was a prison sentence of five years and a fine — which sends a clear signal to financial institutions about compliance and the need for heightened AML vigilance.
This case underlines that banks and other financial institutions must enforce Know-Your-Customer (KYC) and monitor “red-flag” patterns (unusual loan-to-collateral ratios, abnormally large gambling-linked flows) to prevent being unwitting facilitators of money laundering.
International Benchmarks: United States & Malaysia
United States: The US has long been active in AML enforcement, including in sectors linked to illegal gambling. A noted episode is the “Black Friday” crackdown on poker sites like PokerStars and Full Tilt Poker, which faced charges including bank fraud and laundering billions in gambling revenue.
Malaysia: Polis Diraja Malaysia (PDRM) has recently identified online gambling as one of the layering methods in money laundering schemes. In a 2024 case, an operator was found to have handled RM 14.05 billion in illegal bets and channelled RM 371 million through bank-offshore structures — leading to seizure of assets, escrow accounts and local bank balances.
These examples emphasise how cross-border cooperation, aggressive asset-seizure regimes and rigorous regulatory oversight (in banking, fintech, offshore finance) are central to effective AML in the digital era.
Strengthening Regulation & Multi-Stakeholder Collaboration
While Indonesia’s legal foundation via the Money Laundering Prevention Act is robust and aligns with international standards, the challenge lies in implementation and coordination. The article identifies three key areas for reinforcement:
- Regulatory oversight of banks, fintech lenders and e-wallet / digital-loan providers
Institutions must adopt stricter AML programs, accurately report suspicious transactions, and be subject to sanctions for non-compliance. The case of Apin BK shows the danger when institutions miss red-flags. - Coordination across enforcement agencies
The national AML/CTF framework — like the Gerakan Nasional Anti Pencucian Uang dan Pendanaan Terorisme (Gernas APU/PPT) involving PPATK, police, prosecutors, and ministries — needs continuous strengthening. Sharing financial-intelligence, asset-freezing, and swift action help close criminal windows. - International cooperation for cross-border laundering
Money laundering increasingly crosses jurisdictions. Indonesia must engage actively in networks such as the Egmont Group and leverage mutual-legal-assistance, extradition, and offshore bank-liability frameworks — just as Malaysia and the US have done.
Finally, media and public awareness play supporting roles: publicity of notable cases helps potential victims recognise the risks of online gambling and illegal loans, while transparency in enforcement drives institutional accountability.
Conclusion
Online gambling and illicit digital lending form a formidable dual threat in the modern financial-crime landscape. The Indonesian case of Apin BK underscores how proceeds from gambling can permeate the regulated financial system and be laundered via loan structures and shell entities. By studying international precedents and reinforcing domestic regulation, coordination and global cooperation, Indonesia can better protect its financial system and society from the harms of money laundering and affiliated crime.
For professionals in AML and financial crime prevention, the key takeaways are: monitor emerging fintech-risk vectors, enforce KYC and suspicious-transaction reporting rigorously, collaborate across agencies and borders, and keep public awareness high. With sustained effort, the ecosystem becomes tougher for money-launderers, and safer for the financial system and citizens.
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