Indonesia’s Financial Watchdog Unveils New Measures to Combat Money Laundering and Terrorism Financing
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Jakarta, Indonesia - Bank Indonesia, the Indonesian financial regulator, has announced a series of new measures aimed at strengthening the country’s efforts to combat money laundering and terrorism financing.
Strengthening Efforts Against Money Laundering and Terrorism Financing
The move comes as part of Indonesia’s bid to become a full member of the Financial Action Task Force (FATF), an inter-governmental organization that sets standards for combating money laundering and terrorist financing. FATF membership is seen as a key step in enhancing Indonesia’s financial system integrity and credibility on the global stage.
New Measures
Under the new measures, Bank Indonesia has:
- Issued guidelines requiring non-bank payment system service providers (PJSP) and non-bank money changers (KUPVA BB) to implement anti-money laundering and combating financing of terrorism (AML-CFT) programs.
- Launched a risk-based approach (RBA) for PJSP SB & KUPVA BB, which will enable banks to assess the level of risk posed by each customer or transaction.
Additional Initiatives
Bank Indonesia has also:
- Prepared sectoral risk assessment (SRA) and RBA guidelines for PJSP SB & KUPVA BB.
- Contributed to the preparation of a national risk assessment (NRA), regional risk assessment (RRA) on corruption, and SRA virtual joint assets with related ministries and agencies.
Public Awareness Campaigns
The regulator has increased public awareness campaigns to educate the public on the importance of using licensed PJSP and KUPVA BB, and promoting institutional cooperation among government agencies, banks, and other financial institutions to prevent and eradicate money laundering, terrorism financing, and funding for the proliferation of weapons of mass destruction.
Commitment to AML-CFT
“We are committed to ensuring that Indonesia’s financial system is free from illegal activities,” said a Bank Indonesia spokesperson. “Our membership in FATF will enable us to strengthen our AML-CFT framework and enhance our cooperation with other countries to combat money laundering and terrorism financing.”
International Support
Indonesia’s bid for FATF membership has been welcomed by the international community, with many experts praising the country’s efforts to improve its financial system integrity.
“Indonesia’s commitment to combating money laundering and terrorism financing is a positive step forward,” said a senior official at the Asian Development Bank. “We look forward to supporting Indonesia’s efforts to become a full member of FATF and enhance its global reputation as a responsible financial player.”