Financial Crime World

Title: Indonesia Joins the Financial Action Task Force (FATF): A Milestone in the Battle Against Money Laundering, Terrorism Financing, and Proliferation Financing

9 November 2023, Jakarta, Indonesia

Indonesia took a significant stride forward in its commitment to combating financial crimes by becoming the 40th member of the Financial Action Task Force (FATF), a global organization leading international efforts against money laundering, counter-terrorism financing (CTF), and the prevention of proliferation financing of weapons of mass destruction.

FATF: A Global Leader in Anti-Financial Crimes Efforts

FATF is a crucial intergovernmental body dedicated to setting and implementing the global Anti-Money Laundering/Counter-Terrorism Financing (AML/CFT) standards. As a global watchdog, FATF oversees and supports its members in implementing these standards, providing:

  • Access to the latest information and best practices
  • Cooperative and coordinated actions with members and stakeholders
  • Peer reviews and mutual evaluations of AML/CFT regimes

With Indonesia’s entry, it will gain valuable insights from these collaborations and contribute to FATF’s ongoing efforts to strengthen the global response to financial crimes.

Threats Posed by Financial Crimes

Financial crimes pose significant risks to security and stability at the global, regional, and national levels. These illicit activities are interconnected and create an enabling environment for other criminal behaviors, including:

  • Corruption
  • Drug trafficking
  • Human trafficking
  • Tax evasion
  • Cybercrime
  • Environmental crime
  • Organized crime

These criminal activities undermine the rule of law, democracy, and human rights, eroding trust and confidence in financial systems and the legitimate economy.

UNODC’s Partnership with Indonesia

The United Nations Office on Drugs and Crime (UNODC) has closely collaborated with Indonesia to combat illicit financial flows and financial crimes through its Global Programme against Money Laundering, Proceeds of Crime, and the Financing of Terrorism (GPML). UNODC provides technical assistance and capacity building support to various stakeholders, fostering dialogue and strengthening AML/CFT frameworks. In collaboration with Indonesia, UNODC also seeks to tackle emerging and priority topics, such as:

  • Virtual assets
  • Public-private partnerships
  • Asset recovery

Global Partners Supporting the Battle Against Financial Crimes

UNODC extends its gratitude to its donors and partners for their financial and technical assistance in furthering its mission to strengthen AML/CFT frameworks and combat financial crimes on a global scale. Some of its key supporters include:

  • Norway
  • The United States
  • Germany
  • Egypt
  • The United Kingdom

These entities share a common goal in safeguarding the integrity of financial systems and protecting them from criminal activities.