Financial Crime World

Bank Indonesia’s Anti-Money Laundering and Counter-Terrorism Financing Efforts

Introduction

Bank Indonesia is committed to combating money laundering, terrorist financing, and proliferation financing in line with international standards set by the Financial Action Task Force (FATF). The bank has implemented various strategies to achieve this goal.

Key Initiatives

  • Fulfillment of FATF Recommendations: Bank Indonesia has fulfilled all FATF recommendations for the payment system sector and foreign exchange business activities, ensuring effective prevention and eradication of money laundering, terrorism financing, and proliferation financing.
  • Effective Application of AML-CFT Principles: The bank has applied Anti-Money Laundering and Counter-Terrorism Financing (AML-CFT) principles to support the integrity of Indonesia’s financial system, increase its credibility and reputation, and comply with applicable international standards.
  • Public Awareness and Institutional Cooperation: Bank Indonesia is increasing public awareness and institutional cooperation to prevent and eradicate money laundering, terrorism financing, and proliferation financing.

Provisions and Guidelines

The bank has issued provisions and guidelines for:

  • Non-Bank Payment System Service Providers (PJSP): The bank has implemented regulations and guidelines for PJSP to ensure effective AML-CFT compliance.
  • Non-Bank Money Changers (KUPVA BB): Bank Indonesia has issued provisions and guidelines for KUPVA BB to prevent money laundering, terrorism financing, and proliferation financing.
  • Financial Technology: The bank has prepared guidelines for Financial Technology to ensure compliance with AML-CFT standards.

Risk Assessment and National Cooperation

Bank Indonesia has:

  • Conducted Sectoral Risk Assessments (SRA): The bank has conducted SRA for PJSP, KUPVA BB, and Virtual Asset Service Providers.
  • Developed Risk-Based Approach (RBA) Guidelines: Bank Indonesia has developed RBA guidelines for PJSP, KUPVA BB, and Virtual Asset Service Providers.
  • Contributed to National Risk Assessments (NRA): The bank has contributed to NRA on Corruption and Regional Risk Assessment (RRA) on Corruption.

Conclusion

Bank Indonesia’s efforts aim to support Indonesia’s bid to become a FATF Full Member, demonstrating the country’s leadership in Asia and emerging markets, improving its reputation, and increasing investment opportunities.