Headline: Indonesia Joins Financial Action Task Force: A Major Milestone in Indonesia’s Fight Against Money Laundering and Terrorism Financing
Jakarta, Indonesia (9 November 2023)
Indonesia has achieved a significant milestone in its efforts to combat financial crimes by becoming the newest member of the Financial Action Task Force (FATF). This international organization, composed of 39 other countries, is dedicated to setting global standards for anti-money laundering and counter-terrorism financing (AML/CFT).
Indonesia’s Commitment to Upholding the Integrity of the Global Financial System
Indonesia’s inclusion in the FATF marks an important moment in its dedication to upholding the integrity of the global financial system. The FATF will provide Indonesia with:
- The latest information and best practices on AML/CFT.
- Opportunities to significantly contribute to the development and implementation of FATF standards.
The Role of the Financial Action Task Force (FATF)
The FATF plays a pivotal role in fostering collaboration and coordination among members and stakeholders to prevent the misuse of the financial system by criminals and terrorists. As a member, Indonesia will undergo regular and rigorous evaluations that will offer constructive feedback and recommendations for improvement in the following areas:
- Money laundering
- Terrorism financing
- Proliferation of weapons of mass destruction financing
- Corruption
- Drug trafficking
- Human trafficking
- Tax evasion
- Cybercrime
- Environmental crimes
- Organized crime
Support from UNODC and International Partners
The United Nations Office on Drugs and Crime (UNODC), an essential partner in Indonesia’s efforts to strengthen its commitment against illicit financial flows and financial crimes, has provided valuable technical assistance and capacity building to Indonesian stakeholders. These stakeholders include:
- Law enforcement
- Prosecutors
- Regulators
- Financial institutions
- Non-financial businesses and professions
UNODC has also facilitated dialogue and cooperation between Indonesia and various global partners regarding AML/CFT matters.
Addressing Emerging and Priority Issues
As the AML/CFT landscape continues to evolve, UNODC remains committed to collaborating with Indonesia to address emerging and priority issues like:
- Virtual assets
- Public-private partnerships
- Asset recovery
Partnership and Financial Assistance
FATF membership, combined with UNODC’s partnership, will strengthen Indonesia’s position in the global fight against financial crimes. Indonesia’s donors and partners, including Canada, the European Union, Japan, Australia, and Sweden, have provided crucial financial and technical assistance to Indonesia to improve its AML/CFT framework.
Together, Indonesia, the FATF, and UNODC are united in their dedication to making the financial system a safer, more secure, and more transparent place.