Legal Professionals as Gatekeepers in Indonesia’s Anti–Money Laundering Regime: Balancing Reporting Duties and Professional Confidentiality

Abstract

Money laundering increasingly relies on “gatekeepers”—professional intermediaries who enable the creation of legal and financial structures that may obscure illicit proceeds. In Indonesia, the anti–money laundering framework largely concentrates reporting obligations on financial service providers, while the regulatory position of legal professionals (including lawyers, notaries, and land deed officials/PPAT) remains contested due to professional confidentiality duties. This article employs doctrinal (normative) legal research by analyzing Indonesia’s anti–money laundering legislation and implementing regulations and situating them against international standards promoted by Financial Action Task Force and guidance from United Nations Office on Drugs and Crime. The analysis identifies a regulatory gap in clarifying when and how legal professionals should function as reporting parties, particularly for high-risk activities such as establishing legal entities, handling client funds, and conducting property transactions. The article further examines the tension between suspicious transaction reporting and professional secrecy, arguing for a calibrated, risk-based approach that defines reportable activities, provides legal certainty and safe-harbor protections, strengthens supervision and compliance mechanisms, and enhances coordination with PPATK. These measures are proposed to reinforce integrity in Indonesia’s financial system while safeguarding legitimate professional confidentiality.