Combating Money Laundering and Terrorism Financing Indonesia Perspective
Combating money laundering has been a primary concern for Government of Indonesia (GOI) since the economic and political crises erupted in 1997. The GOI paid more attention in eradicating such criminal activities, both because of our domestic needs and to meet our international commitments. It is deemed necessary to eradicate those criminal acts because the domestic crises occurred mainly due to corruption, collusion and nepotism– fundamental weaknesses that are basically homegrown problems.
Moreover, money laundering is not only a national crime but also a transnational crime, therefore it has to be eradicated, among other things by engaging in regional or international cooperation through bilateral or multilateral forums. Internationally, the prevention of the criminal offenses of money laundering has been promoted by the establishment of a task force known as The Financial Action Task Force (FATF) on Money Laundering by the G-7 Summit held in Paris on July 1989. Indonesia is yet a member of FATF, but has been a member of the Asia Pacific Group on Money Laundering (APG), an international cooperation organization established in 1997 to cooperate with FATF in the Asia Pacific regions.
In June 2001, Indonesia and nineteen other countries were included in the list of NCCTs. The weaknesses focused on by FATF were the absence of Crime of Money Laundering Law that determine money laundering as a criminal offence, loopholes in financial regulation such as the absence of Know Your Customer Principles Regulation for financial institutions, inadequate resources for preventing, detecting and repressing money laundering activities, and the lack of international co-operation. Inclusion of Indonesia in the list of NCCTs has pushed the GOI to take serious measures in a short timeframe relatively, directed particularly remedying weaknesses identified by the FATF. The Government of Indonesia has enacted Law Number 15 Year 2002, the Crime of Money Laundering Law, as amended by Law Number 25 Year 2003. This Law stipulates money laundering as criminal offence and the establishment of the Center for Financial Transactions Reporting and Analysis as the independent agency in implementing its duties and authority for preventing and eradicating the criminal offenses of money laundering. more makalah-seminar-chile.pdf