Financial Crime World

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Indonesia’s Efforts Against Money Laundering and Terrorism Financing

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Indonesia has been working tirelessly to combat money laundering, terrorism financing, and the proliferation of weapons of mass destruction. The country is also preparing for Full Membership in the Financial Action Task Force (FATF), a move that will enhance its financial system integrity and reputation.

APG Mutual Evaluation Report

The APG (Asia-Pacific Group on Money Laundering) Mutual Evaluation Report highlights Indonesia’s progress in combating money laundering and terrorism financing. The key findings are:

  • Overall Rating: Indonesia received an overall rating of “Largely Compliant” (LC) with 29 recommendations.
  • Immediate Outcomes:
    • 5 Substantial ratings: indicating significant improvement needed.
    • 5 Moderate ratings: indicating some improvement needed.
    • 1 Low rating: indicating a need for urgent attention.

Preparation towards FATF Full Membership

Becoming a Full Member of the FATF will bring numerous benefits to Indonesia, including:

  • Accelerating recognition as a country with high financial system integrity.
  • Improving its ranking in various aspects (including investment).
  • Demonstrating leadership in Asia and emerging markets.
  • Playing an active role in setting AML/CFT international standards.
  • Enhancing the effectiveness of the formulation of stance between Indonesia and Bank Indonesia.

Bank Indonesia’s Strategy

To support the government’s efforts, Bank Indonesia has prepared three strategies:

1. Fulfilling FATF Recommendations

Bank Indonesia aims to fulfill all FATF recommendations for the payment system sector and foreign exchange business activities.

2. Increasing Public Awareness and Institutional Cooperation

The central bank will increase public awareness and institutional cooperation in preventing and eradicating money laundering, terrorism financing, and funding for the proliferation of weapons of mass destruction.

3. Preparing Sectoral Risk Assessment (SRA) and Risk Based Approach (RBA) Guidelines

Bank Indonesia is preparing SRA and RBA guidelines for Non-Bank Payment System Service Providers (PJSP) and Non-Bank Money Changers (KUPVA BB).

4. Contributing to National Risk Assessments

The central bank will contribute to the preparation of a National Risk Assessment (NRA), Regional Risk Assessment (RRA) on Corruption, and SRA Virtual.