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Australian Journal of Asian Law

Abstract from Volume 7 No 1 (2005)

Legal Culture, Institutional Design Choices, and the Struggle to Implement an Effective Anti-Money Laundering Regime in Indonesia

Jonathan Eddy is a visiting Professor of Law, Willamette University School of Law. He served as legal advisor to the Indonesian Department of Justice and Human Rights in 2003, working with Indonesia’s new financial intelligence unit, the PPATK.

Observers often attribute problems encountered in transplantation of legal institutions to differences in legal culture. This article argues that attention should first be directed to more prosaic matters: the consequences attendant upon early decisions of institutional design; the degree of thoroughness with which new institutions and rules are integrated with existing institutions and law; the extent to which resources are devoted in a manner consistent with the new institutions; and simple institutional self-interest. Indonesia’s experience with development of an anti-money laundering regime suggests that legal transplantation has much in common with any legal reform. Legal culture often functions as a residual category, denominating what cannot be, or has not been, more precisely explained. To give the concept greater primacy may cut short useful investigation and analysis.

(2005) 7(1) Asian Law 1
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