Indonesia Joins Financial Action Task Force to Combat Money Laundering and Terrorism Financing

Jakarta, November 9, 2023 - In a significant move to combat financial crimes, 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.

Access to International Standards and Best Practices

As a member of the FATF, Indonesia will have access to the latest information and best practices on Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT). This will enable it to contribute to the development and implementation of the FATF standards.

Regular Peer Reviews and Mutual Evaluations

As a member of the FATF, Indonesia will undergo regular peer reviews and mutual evaluations to assess its level of compliance with AML/CFT regulations. This process will provide constructive feedback and recommendations for improving its AML/CFT framework and performance.

The Financial Action Task Force’s Role in Combating Financial Crimes

The Financial Action Task Force has played a crucial role in raising global awareness about the threats posed by money laundering, terrorism financing, and proliferation financing. It has identified strategic deficiencies in countries and jurisdictions that pose a risk to the international financial system and applied measures and incentives to encourage reforms.

Serious Threats to Global Security and Stability

Money laundering, terrorism financing, and proliferation financing are serious threats to global security and stability. These crimes enable and fuel other criminal activities such as corruption, drug trafficking, human trafficking, tax evasion, cybercrime, environmental crime, and organized crime.

United Nations Office on Drugs and Crime’s Partnership with Indonesia

The United Nations Office on Drugs and Crime (UNODC) has been a long-standing partner of Indonesia in strengthening its efforts to combat illicit financial flows and financial crimes. UNODC has provided technical assistance and capacity building to public and private sector stakeholders involved in AML/CFT.

Quote from UNODC Spokesperson

“We are honored to have been part of this process and look forward to continuing our partnership with Indonesia in the fight against financial crimes,” said a UNODC spokesperson. “We acknowledge the support and contributions of our donors and partners, including Norway, the United States, Germany, Egypt, and the United Kingdom, who have provided financial and technical assistance to UNODC and Indonesia.”

Conclusion

Indonesia’s membership in the FATF is a significant step forward in its efforts to combat money laundering, terrorism financing, and proliferation financing. The country will now have access to international standards and best practices, and will be subject to regular peer reviews and mutual evaluations. This will help Indonesia to improve its AML/CFT framework and performance, and contribute to the global fight against financial crimes.