FATF Welcomes Indonesia as 40th Member, Boosts Efforts Against Money Laundering and Terrorism Financing

Indonesia Joins Intergovernmental Organization to Combat Financial Crimes

Jakarta, November 9, 2023 - Indonesia has officially become the 40th member of the Financial Action Task Force (FATF), an intergovernmental organization dedicated to preventing money laundering, terrorism financing, and proliferation financing of weapons of mass destruction.

Membership Benefits

As a FATF member, Indonesia will have access to cutting-edge information and best practices on anti-money laundering and counter-terrorism financing (AML/CFT). The country will also be able to contribute to the development and implementation of international standards set by FATF. This membership is seen as a major achievement for Indonesia, demonstrating its commitment to fighting financial crimes and protecting the integrity of the global financial system.

Regular Assessments and Feedback

By joining FATF, Indonesia will undergo regular assessments and receive constructive feedback and recommendations to improve its AML/CFT framework and performance. This will enable the country to identify and address weaknesses in its AML/CFT regime, ensuring that it is better equipped to combat financial crimes.

FATF’s Role in Combating Financial Crimes

FATF’s international standards aim to prevent criminals and terrorists from misusing the financial system. The organization has been instrumental in raising awareness about the threats posed by money laundering, terrorism financing, and proliferation financing, and has played a key role in identifying and addressing weaknesses in countries’ AML/CFT regimes.

UNODC Partnership

The United Nations Office on Drugs and Crime (UNODC) has been a long-standing partner of Indonesia in strengthening its efforts to combat financial crimes. UNODC has provided technical assistance and capacity building to various stakeholders involved in AML/CFT, including law enforcement, prosecutors, regulators, financial institutions, and non-financial businesses.

Ongoing Partnership

The partnership between UNODC and Indonesia is expected to continue, with the aim of enhancing cooperation and coordination on AML/CFT issues. UNODC acknowledges the support and contributions of its donors and partners, including Norway, the United States, Germany, Egypt, and the United Kingdom, which have provided financial and technical assistance to UNODC and Indonesia in this endeavour.

Global Impact

Money laundering, terrorism financing, and proliferation financing are serious threats to global security and stability, enabling and fueling other crimes such as corruption, drug trafficking, human trafficking, tax evasion, cybercrime, environmental crime, and organized crime. The FATF’s membership is seen as a crucial step towards strengthening Indonesia’s AML/CFT framework and contributing to the global effort against financial crimes.

Conclusion

Indonesia’s membership in FATF marks an important milestone in its efforts to combat financial crimes and protect the integrity of the global financial system. With its new membership, Indonesia will have access to cutting-edge information and best practices on AML/CFT, and will be able to contribute to the development and implementation of international standards set by FATF.