ABSTRACT

Terrorism is a transnational, organized crime with extensive networks that threaten both national and international security. In Indonesia, evolving social, political, and ideological dynamics contribute to various acts of terrorism, consequently impacting the state's security and stability. The National Risk Assessment (NRA) on Terrorist Financing, conducted by the Indonesian Financial Transaction Reports and Analysis Center alongside stakeholders within the Inter-Agency Working Group of NRA Indonesia, indicates that high-risk terrorist financing typologies occur through donations to foundations, non-profit organizations (NPOs), new business ventures, associations, as well as micro and small enterprises. This condition places the notary profession at a potential risk of being exploited during the incorporation of legal entities and the legalization of transactions. This study aims to analyze the application of the Know Your Customer (KYC) Principle by notaries, identifying both the obstacles and the effectiveness of its implementation. The methodology employed is normative legal research, utilizing statutory and conceptual approaches. The findings indicate that the application of the KYC Principle by notaries serves as a vital instrument in preventing terrorist financing. However, its effectiveness necessitates robust inter-agency coordination, comprehensive regulatory dissemination, and an enhanced understanding among notaries regarding terrorism risk indicators. 

KEYWORDS: Know Your Customer (KYC) Principle, Notary, Terrorist Financing