Fraud and Money Laundering Control on Religious Donations: a Study of Mosque Donations in Indonesia Khozin Arief(a*), Basuki(b)
a) Fakultas Ekonomi dan Bisnis, Universitas Airlangga
Jl. Airlangga No.4 Surabaya 60286, Indonesia
*khozin.arief-2021[at]feb.unair.ac.id
b) Fakultas Ekonomi dan Bisnis, Universitas Airlangga
Jl. Airlangga No.4 Surabaya 60286, Indonesia
Abstract
Purpose - This study aims to identify potential FML (Fraud and Money Laundering) and design FML controls to prevent money laundering activities (especially those carried out by terrorists), corruption, and fraud in religious donation institutions, especially mosque donations. The benefits of this research are input in making legal regulations for governments, banks, donor agencies, anti-corruption organizations, and international anti-terrorist money laundering organizations. The results of this study can be applied to religious donation institutions (especially mosque donations) around the world and become scientific input that can prevent the public from being deceived in donating funds to religious institutions.
Design/methodology/approach - This study uses a case study approach in several mosques in Indonesia, and data collection is done through participant observation, in-depth interviews, and documentation.
Findings - This study found several types of potential FML in mosque donations and several controls to prevent it
Originality - This is the first study to identify the potential for FML (Fraud and Money Laundering) and design controls to prevent FML in mosque donation institutions. The results of this study are important and urgent to be applied in religious donation institutions, especially mosques because the way people donate is growing, accompanied by technological advances. This incident was accompanied by the development of models and technologies used by FML actors. The FML case involves state officials, mosque administrators, the general public, and international terrorists. Researchers designed this control by identifying FML first and then developing controls to prevent identified FML. It is a new method.
Keywords: Fraud and Money Laundering, Control, Mosque Donation
