Financial Crime World

Indonesia Joins Financial Action Task Force (FATF): Boosting AML/CFT Measures against Money Laundering and Terrorism Financing

Nov. 9, 2023

Jakarta, Indonesia - Indonesia’s accession to the Financial Action Task Force (FATF) signifies an essential step forward in its endeavor to combat money laundering, terrorism financing, and weapons of mass destruction proliferation finance. This achievement underlines Indonesia’s devotion to fighting financial crimes and preserving the international financial system’s security.

Benefits of FATF Membership

Indonesia, now the 40th member of FATF, will derive various advantages, such as:

  1. Access to Latest AML/CFT Information and Best Practices: Indonesia will have direct access to the most recent AML/CFT information and best practices, allowing it to strengthen its financial crime prevention measures.

  2. Collaborative Partnerships and Engagement: By becoming a part of FATF, Indonesia will establish collaborative partnerships and engage with other FATF members, fostering international cooperation and knowledge exchange.

  3. Regular Peer Reviews, Evaluations, and Constructive Feedback: FATF’s membership provides Indonesia with regular peer reviews, evaluations, and constructive feedback to improve its AML/CFT framework and performance.

FATF’s Global Impact

FATF’s influence transcends its members, initiating dialogue and collaboration with other stakeholders to mitigate potential threats posed by financial crimes. Over the years, FATF:

  • Has identified and addressed strategic deficiencies and weaknesses in countries and jurisdictions that may pose risks to the international financial system.
  • Plays a crucial role in shaping the global response to financial crimes, including money laundering, terrorism financing, and weapons of mass destruction proliferation finance.

UNODC’s Role in Combating Financial Crimes

UNODC’s partnership with Indonesia to combat financial crimes has been robust. UNODC’s Global Programme against Money Laundering, Proceeds of Crime, and the Financing of Terrorism (GPML) has offered technical assistance and capacity building to various Indonesian stakeholders, including law enforcement agencies, prosecutors, financial institutions, regulatory bodies, and non-financial businesses and professions.

The collaboration between UNODC and Indonesia has led to:

  • Crucial dialogue and cooperation between Indonesia and other countries, regional organizations, and international bodies on AML/CFT issues.
  • Policy dialogues and advocacy efforts on emerging and priority topics, such as virtual assets, public-private partnerships, and asset recovery.

Strengthening Indonesia’s Financial Crime Prevention Measures

Indonesia’s inclusion in FATF is a testament to its unwavering commitment to fortifying its financial crime prevention measures. This new chapter, coupled with UNODC’s support and partnerships, is poised to make substantial progress in combating financial crimes.

Acknowledgments and Partnerships

UNODC expresses its gratitude to its donors and partners—Norway, the United States, Germany, Egypt, and the United Kingdom—for their ongoing financial and technical assistance in fighting illicit financial flows and financial criminal activities.