Financial Crime World

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Indonesia Strengthens Anti-Money Laundering Policies with New Regulation

Jakarta, Indonesia - A New Era for Financial Integrity

The Indonesian Financial Services Authority (OJK) has issued a new regulation aimed at strengthening the integrity of the country’s financial services sector by implementing anti-money laundering (AML), counter-terrorist financing (CFT), and countering proliferation financing of weapons of mass destruction (CPF) programs.

Aligning with International Principles

The OJK Regulation No. 8 of 2023 replaces previous regulations and is designed to mitigate emerging risks of money laundering, terrorist financing, and weapons mass destruction proliferation financing, which pose a severe threat to the country. Chairman of the Board of Commissioners of the OJK, Mahendra Siregar, emphasized that the new regulation is aligned with international principles, such as those issued by the Financial Action Task Force on Money Laundering (FATF), and laws and regulations in Indonesia.

Key Provisions

The regulation has several substantive provisions, including:

  • The requirement for implementing AML-CFT and CPF programs to be extended to a wider range of financial institutions, such as:
    • Trusts
    • Securities crowdfunding
    • Financial technology (FinTech) or digital financial innovation firms
    • Other types of financial institutions required by law
  • Regulatory requirements on proliferation financing
  • Suspicious transaction reports
  • Risk mitigation
  • Sanctions for violation

Implementation and Transition

The OJK has provided a six-month transition period for financial institutions to make necessary adjustments. The new regulation demonstrates the authority’s commitment to supporting Indonesia’s aspiration to become a full member of the FATF.

Effective Immediately

The regulation is effective immediately and applies to all financial institutions under the jurisdiction of the OJK.