Financial Crime World

Indonesia Takes Steps to Enhance Anti-Money Laundering and Know Your Customer Compliance

Removing Indonesia from the FATF’s Blacklist

Jakarta, Indonesia - In 2015, Indonesia was successfully removed from the Financial Action Task Force’s (FATF) blacklist after making significant strides in improving its anti-money laundering (AML) and know your customer (KYC) regulations.

Commitment to Preventing Money Laundering and Terrorist Financing

As an observer of the FATF and a member of the Asia/Pacific Group on Money Laundering (APG), Indonesia is committed to preventing money laundering and terrorist financing. The country has strengthened its AML legislation through various laws, including:

  • Law No. 3 of 2011
  • Law No. 5 of 2018
  • Law No. 8 of 2010
  • Law No. 9 of 2013

Implementing AML Programs

The Bank of Indonesia has issued several regulations to implement AML programs for commercial banks and non-bank payment systems.

Key Agencies Involved in AML Compliance

Several agencies have jurisdiction over investigating money laundering and corruption charges, including:

  • State Police of the Republic of Indonesia
  • Prosecutor’s Office
  • Corruption Eradication Commission (KPK)
  • National Narcotics Agency (BNN)
  • Directorate General of Taxes
  • Directorate General of Customs and Excise

Intelligence-Gathering Agency

The Financial Transaction Reports and Analysis Center (PPATK) serves as the country’s intelligence-gathering agency on money laundering and terrorist financing.

Regulatory Role

The Financial Services Authority (OJK), responsible for regulating the financial services sector, plays a crucial role in preventing money laundering.

Indonesia’s Commitment to AML Compliance

Indonesia is committed to maintaining its position as a leading economy in Southeast Asia while ensuring the integrity and transparency of its financial system. The country aims to become a full member of the FATF by 2021, with ongoing improvement in its regulatory framework.

By strengthening its AML regulations and implementing effective programs, Indonesia demonstrates its commitment to combating money laundering and terrorist financing, ultimately ensuring the stability and credibility of its financial system.