Indonesia joins Financial Action Task Force (FATF) as 40th Member

November 9, 2023, Jakarta, Indonesia: A significant milestone was reached yesterday as Indonesia was formally recognized as the newest member of the Financial Action Task Force (FATF). This membership comes after years of efforts to combat money laundering, terrorism financing, and proliferation financing of weapons of mass destruction.

FATF’s Role and Influence

The Financial Action Task Force is an intergovernmental organization known for setting international standards against money laundering, terrorism financing, and the financing of weapons of mass destruction. By joining the FATF, Indonesia will gain access to valuable information and best practices to bolster their Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) regime.

Collaboration and Best Practices

Collaboration and coordination among FATF members and stakeholders are essential, ensuring a unified effort against the misuse of the financial system by criminals and terrorists. Regular assessments and constructive feedback help members improve their effectiveness.

Global Impact

The FATF has played a pivotal role in identifying and addressing strategic deficiencies and weaknesses in countries and jurisdictions that may pose risks to the international financial system. Incentives and measures are employed to motivate these countries to implement necessary reforms.

Addressing the Global Threat

Money laundering, terrorism financing, and proliferation financing pose a significant threat to the security and stability of the world. These crimes facilitate and fund other criminal activities like corruption, drug trafficking, human trafficking, tax evasion, cybercrime, environmental crime, and organized crime. They undermine the rule of law, democracy, and human rights and damage trust and confidence in financial systems and the legitimate economy.

UNODC’s Role in Indonesia

Long-standing partner of Indonesia in combatting illicit financial flows and financial crimes, the UNODC’s Global Programme against Money Laundering, Proceeds of Crime and the Financing of Terrorism (GPML) has provided essential technical assistance and capacity building to Indonesian stakeholders. These stakeholders include law enforcement, prosecutors, regulators, financial institutions, and non-financial businesses and professions.

Technical Assistance and Policy Dialogue

UNODC’s involvement extended beyond technical assistance to dialogue and cooperation between Indonesia and other countries and organizations on AML/CFT issues. The organization also engaged in policy dialogue and advocacy on emerging and priority topics such as virtual assets, public-private partnerships, and asset recovery.

“UNODC is proud to have been part of this process,” announced a UNODC representative. “We look forward to continuing our partnership with Indonesia in the fight against financial crimes.”

Invaluable Support from Donors and Partners

The support and contributions of UNODC’s donors and partners, including Norway, the United States, Germany, Egypt, and the United Kingdom, have been vital in their endeavors.