Indonesia’s Financial Regulators Scale Up Efforts Amidst Crisis
As the world grapples with the economic fallout of the crisis, Indonesia’s financial regulators are stepping up their game to combat money laundering and terrorist financing. The country’s top watchdogs, Otoritas Jasa Keuangan (OJK) and Bank Indonesia, have been working tirelessly to strengthen anti-money laundering laws and regulations.
Regulatory Landscape
To stay ahead of the curve, the OJK has issued several regulations aimed at combating money laundering and terrorist financing. The agency’s Regulation No. 12/POJK.01/2017 requires financial institutions to implement robust customer due diligence measures, screen customers against international sanctions lists, and report suspicious transactions promptly.
The Bank of Indonesia has also been proactive in implementing anti-money laundering measures, issuing regulations that require commercial banks to adopt anti-money laundering and combating the financing of terrorism programs.
Challenges Remain
Despite these efforts, Indonesia remains vulnerable to money laundering due to gaps in financial system legislation and regulation, a cash-based economy, weak rule of law, and partially ineffective law enforcement institutions. The country’s banking, financial markets, real estate, and auto industries are often used to launder criminal proceeds.
What Needs to be Done?
To address these challenges, the government needs to strengthen its anti-money laundering laws and regulations in line with international standards. This includes assessing the capabilities of modern technologies such as machine learning and big data analytics in enhancing the effectiveness of AML compliance programs.
Financial institutions must also enhance their anti-money laundering regulations and work towards the criteria outlined in the FATF’s 40 Recommendations. This includes:
- Implementing customer due diligence measures
- Screening customers against international sanctions lists
- Appointing a dedicated AML compliance officer
- Reporting suspicious transactions promptly
How Tookitaki Can Help
Innovations in tech have led to financial institutions facing more complex financial crime challenges. Current siloed, rules-driven AML systems are not designed to keep pace with the growing business and compliance challenges that have emerged due to FinTech-led disruption in the space.
Tookitaki’s Anti-Money Laundering Suite (AMLS) is an end-to-end AML operating system that enables financial institutions to have comprehensive risk coverage. The suite comprises:
- Transaction Monitoring
- Dynamic Customer Risk Review
- Smart Screening
- Case Management solutions under one roof for all AML needs
Through Tookitaki’s game-changing approach to democratising AML insights, the company has enabled AML experts from around the world to create and share the largest library of patterns of money laundering and financial crime behavior. This allows banks and financial institutions to join forces in the fight against financial crime.
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Contact us today to learn how your business can benefit and strengthen your compliance efforts. Our team of experts is on hand to answer all your questions.