Financial Crime World

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Financial Crime Definition in Indonesia: A Growing Concern for Financial Services Industry

June 9, 2022 - Indonesia

Financial crime has become a pressing issue in the financial services industry globally, and Indonesia is no exception. According to a recent survey by Deloitte, financial crime has become a significant problem for corporations to solve, requiring a strategy to protect multiple information, data, and technologies simultaneously.

What is Financial Crime?

Financial crime refers to any activity involving fraudulent or criminal behavior to gain personal financial gain. This can take many forms, including:

  • Money laundering
  • Terrorism financing
  • Fraud
  • Tax evasion
  • Identity theft

In Indonesia, the Financial Services Authority (OJK) has taken steps to combat financial crime, but more needs to be done to prevent these illegal activities.

The Impact of Financial Crime

The results of a 2022 survey by PwC show that even though the crime rate may be stable, the impact of financial crime is significant for corporations when measured from annual income. Globally in the financial sector, the dominating types of fraud are:

  • Customer fraud (44%)
  • Cybercrime (38%)
  • Know-your-customer failure (29%)

According to data from the International Monetary Fund (IMF) for 2020, the estimated total annual average loss due to cyberattacks experienced by the financial services sector globally is USD 100 billion or more than IDR 1,433 trillion. Moreover, the United Nations predicts that the amount of money laundering will reach IDR 29,000 trillion every year.

The Growing Threat

The Financial Action Task Force (FATF) has noted an increase in the abuse of online financial services and virtual assets to move and hide illicit funds. To combat this growing threat, financial institutions and public institutions require more sophisticated tools to monitor and track criminals and their transactions.

Mitigating Financial Crime

A key tool in the fight against financial crime is reliable and accurate data. However, managing the quality of data remains a significant challenge. Efforts are needed to mitigate and combat financial crime in the financial services industry to prevent potential losses from occurring.

Event Objective

The objective of this event is to provide an understanding of financial crime, including:

  • The factors that cause it
  • Increase knowledge and insight regarding financial crime mitigation strategies in the Financial Services Industry
  • Increase awareness regarding the importance of fighting financial crime in the Financial Services Industry

Participants will include top officials from OJK, representatives from the financial services industry, academics, and members of the general public.

Speakers

The event features esteemed speakers including:

  • Agus Dwi Handaya, Director of Human Capital and Compliance at PT Bank Mandiri (Persero) Tbk
  • Prof. Drs. Adrianus Eliasta Sembiring Meliala, M. Si., M. Sc, Ph.D., a professor from the Faculty of Social Sciences and Politics at Universitas Indonesia
  • Danang Tri Hartono, Deputy Analyst and Inspector at PPATK