THE ROLES OF ISLAMIC BANKING IN THE PREVENTION OF MONEY LAUNDERING

Abstract

By the existence of globalization, the corporate crime which is a kind of white-collar crime develops fast and in alarming pace, because not only it includes certain location, it’s also able to transfer to other locations –being trans-territorial kind of crime. The corporate crime that is difficult to conclude is the money laundering crime. Money laundering crime, as it is developing by years, comes real close with the banking system. Through the banking system developed in every state, the spread of money laundering is hardly stoppable. Banking system, including conventional and non-conventional, becomes the tool to commit the crime. Islamic banking started to develop well in the recent decade, especially in Indonesia. It is possible that it becomes one of the tools of the money laundering, too. However, in Islamic banking itself, there is no mentioning about money laundering from Al-Quran, hadith, or Indonesian regulation. Instead, based on the Quran and hadith, there are mentioned about what kind of act to commit is prohibited by Allah. Taking general definition about money laundering, it could be safely stated that everything earned through the prohibited acts is considered haram and its essence is and will be haram. Considering the essence of the money, money laundering in Islamic banking is possible to be suppressed due to the principles maintained in the Islamic banking system.