ANTI-MONEY LAUNDERING ENFORCEMENT FOR CRYPTOCURRENCY: A SYSTEMATIC LITERATURE REVIEW

Abstract

The rapid growth of cryptocurrency and blockchain technology has transformed digital financial transactions by enabling decentralized, borderless, and efficient value transfers. Despite these advantages, cryptocurrencies have also created new opportunities for money laundering due to their pseudonymous nature, cross-border accessibility, and limited regulatory oversight. This study aims to examine strategies for optimizing anti-money laundering (AML) enforcement in cryptocurrency transactions through a systematic review of existing literature and an analysis of the Indonesian regulatory framework. A Systematic Literature Review (SLR) based on the PRISMA approach was employed to analyze 30 studies published between 2015 and 2024 from major academic databases. The findings indicate that effective AML enforcement requires an integrated framework consisting of harmonized regulations, mandatory Know Your Customer (KYC) and AML compliance, blockchain forensic technologies, transaction monitoring systems, and international cooperation among regulators and law enforcement agencies. The review further reveals that fragmented regulations and inconsistent implementation across jurisdictions remain significant barriers to combating cryptocurrency-related money laundering. For Indonesia, strengthening the legal framework by expanding reporting obligations to digital asset service providers and improving regulatory coordination would enhance the effectiveness of AML enforcement. This study contributes to the growing literature by synthesizing current evidence on cryptocurrency regulation and providing policy recommendations to strengthen financial integrity and support the sustainable development of the digital asset ecosystem.