Financial Crime World

Title: Indonesia Joins the Financial Action Task Force (FATF) as a Member: Strengthening Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Measures

Indonesia Officially Becomes an FATF Member

On Tuesday, Indonesia was officially welcomed as a member of the Financial Action Task Force (FATF), the international organization leading the efforts against money laundering, terrorist financing, and other financial crimes. This significant development comes as part of the UN’s commitment to enhancing AML/CFT measures.

What is FATF?

Founded in 1989, FATF is an international organization setting standards and providing recommendations for policymakers, regulators, and financial institutions worldwide. Currently, its membership consists of 39 countries and two regional organizations.

Indonesian Finance Minister’s Address

Minister of Finance and Economic Affairs, Sri Mulyani Indrawati, representing Indonesia, expressed the country’s dedication to implementing FATF’s international standards during her address at the FATF plenary session.

“This membership underscores our dedication to combating financial crimes and ensuring the integrity and stability of Indonesia’s financial system.” - Sri Mulyani Indrawati

Aligning with Global Efforts

Indonesia’s accession into FATF represents its commitment to global efforts in the fight against financial crimes. By adhering to FATF’s recommendations, Indonesian authorities aim to:

  • Improve national frameworks for AML/CFT
  • Increase transparency
  • Enhance cooperation with other member countries

Strengthening AML/CFT Measures

Indonesia has already made progress in strengthening its AML/CFT measures:

  • Passed key legislation, such as the Money Laundering Act and the Terrorist Financing Act
  • Established a Financial Transaction Reports and Analyses Centre (PPATK)

Benefits for Indonesia

Joining FATF has various benefits for Indonesia:

  • Attract more foreign investment
  • Facilitate international economic collaboration
  • Enhance expertise in financial regulation and risk management

FATF’s Response

FATF’s Executive Secretary, David Lewis, congratulated Indonesia on its membership, recognizing the country’s commitment to FATF’s objectives.

“I look forward to working closely with Indonesia to strengthen its AML/CFT frameworks and ensure the effective implementation of FATF’s international standards.” - David Lewis

Collaboration with Regional Organizations

Indonesia now joins regional organizations, like the Association of Southeast Asian Nations (ASEAN) and the Asia Pacific Group, in their commitment to combating financial crimes.

UNODC Support

The United Nations Office on Drugs and Crime (UNODC) provided technical assistance to Indonesia during its efforts to strengthen AML/CFT measures. UNODC’s Regional Office for Southeast Asia and the Pacific (ROSEAP) worked alongside the Indonesian government to assess its compliance with FATF recommendations and build capacity in areas such as risk assessment, money laundering analysis, and regulatory oversight.

Peer Evaluation and Contribution

As an FATF member, Indonesia will undergo regular peer evaluations against the organization’s international standards and contribute to FATF’s policy recommendations and best practices in the field of AML/CFT.

“We look forward to collaborating with our fellow FATF members to ensure a safer, more transparent, and more equitable financial system for all.” - Sri Mulyani Indrawati