Corporate Criminal Liability Formulation and the Application of Beneficial Ownership in Human Trafficking Syndicates

Abstract

The Crime of Human Trafficking (TPPO) in the era of globalization has evolved into an organized crime that often hides behind the legality of corporate entities or shell companies. This practice cunningly employs nominee schemes or “puppet directors” to create a corporate veil that shields the masterminds from legal accountability, while also serving as a strategy to evade the obligation to pay compensation (restitution) to victims. This study aims to examine the urgency of integrating the doctrine of corporate criminal liability with Beneficial Ownership tracing instruments in order to dismantle the impunity enjoyed by human trafficking syndicates. The method used is normative (doctrinal) legal research with a statutory approach and a conceptual approach. The primary legal materials analyzed include the Human Trafficking Law, the New Criminal Code, and Presidential Regulation Number 13 of 2018. The results of the study indicate that the identification of beneficial owners provides strong normative justification for law enforcement authorities to pierce the corporate veil. Through follow-the-money investigations, the true masterminds can be designated as suspects, and all of their personal assets lose legal immunity and become subject to state seizure. This study concludes that the confiscation of assets owned by beneficial owners constitutes an absolute guarantee for the full execution of restitution payments. This progressive measure realizes restorative justice by not only impoverishing and dismantling the financial machinery of human trafficking syndicates, but also restoring the dignity, honor, and future of victims of exploitation.