Indonesia Joins Financial Action Task Force (FATF) as its 40th Member: A Major Milestone in Combating Money Laundering and Terrorism Financing
Announcing Indonesia’s Membership into FATF
Jakarta, Indonesia - November 9, 2023 - Indonesia’s entrance into the Financial Action Task Force (FATF) as its 40th member was officially announced, marking a significant step forward in the country’s commitment to combating money laundering, terrorism financing, and proliferation financing of weapons of mass destruction.
Commitment to Combating Financial Crimes
The Indonesian government’s decision to join the international organization, headquartered in Paris, is seen as a significant step in the nation’s mission to combat financial crimes and safeguard the global financial system’s integrity.
Benefits of FATF Membership
As a new FATF member, Indonesia will:
- Have access to the latest information and best practices on anti-money laundering and counter-terrorism financing (AML/CFT) from the organization, which sets the global standards for these efforts.
- Play a role in the development and implementation of FATF standards.
- Receive constructive feedback and recommendations to enhance its framework and performance.
Role of FATF
The FATF’s primary role includes facilitating cooperation and coordination among its members and other stakeholders to prevent and combat the misuse of the financial system by criminals and terrorists. Regular peer reviews and mutual evaluations of its members’ compliance with FATF guidelines will be conducted.
Threats of Money Laundering, Terrorism Financing, and Proliferation Financing
Money laundering, terrorism financing, and proliferation financing are substantial threats to security and stability worldwide. These financial crimes enable and fuel other criminal activities, such as:
- Corruption
- Drug trafficking
- Human trafficking
- Tax evasion
- Cybercrime
- Environmental crime
- Organized crime
They also undermine the rule of law, democracy, human rights, and trust in financial systems and the legitimate economy.
Collaboration between Indonesia and UNODC
In recent years, the United Nations Office on Drugs and Crime (UNODC) has been a staunch ally to Indonesia in fortifying its stance against illicit financial flows and financial crimes. The organization has provided technical assistance and capacity building to various public and private sector stakeholders involved in AML/CFT, including law enforcement, prosecutors, regulators, financial institutions, and non-financial businesses and professions.
UNODC has also facilitated dialogue and cooperation between Indonesia and other countries, regional, and international organizations to address AML/CFT issues. Additionally, the organization has engaged in policy dialogue and advocacy on emerging and priority topics like virtual assets, public-private partnerships, and asset recovery.
UNODC’s Support and Contributions
UNODC acknowledged the support and contributions of its donors and partners, including Norway, the United States, Germany, Egypt, and the United Kingdom, in providing financial and technical assistance to both UNODC and Indonesia.
UNODC is proud to have been a part of this journey and is looking forward to continuing its collaboration with Indonesia in the fight against financial crimes.