Financial Crime World

INTRAC’s New Authority May Face Lawsuit from Account Holders

Indonesia’s Financial Watchdog Gains New Power to Fight Money Laundering

The Financial Transaction Reports and Analysis Center (INTRAC), Indonesia’s financial watchdog, is set to gain new authority in the fight against money laundering. However, this move may put it at risk of facing a lawsuit from account holders.

New Authority and Concerns

According to a recent report, INTRAC will now have the power to delay transactions for five to 20 days, compared to the central bank’s one-day limit. This new authority is expected to give INTRAC more leverage in its investigations into money laundering cases.

  • Some experts have raised concerns that this new authority may be seen as overstepping by account holders, who may feel that their privacy and confidentiality are being compromised.
  • The new law also grants six institutions the power to investigate money laundering cases, including the Corruption Eradication Commission (KPK). This move is seen as a major advancement in Indonesia’s efforts to combat financial crimes.

Limitations of INTRAC’s Current Powers

A recent study found that INTRAC’s current powers are limited to conducting preliminary examinations, and that it needs pro justicia authority to effectively investigate money laundering cases. The study also compared INTRAC’s powers to those of financial intelligence units in other countries, including Malaysia, which has a more comprehensive framework for combating money laundering.

Proponents’ Argument

Proponents of the new law argue that it is necessary to ensure the integrity of Indonesia’s financial system and to prevent the misuse of bank secrecy. The Chairman of INTRAC has stated that there is no such thing as absolute bank secrecy when it comes to combating money laundering, and that the rule of law takes precedence over individual interests.

Implications

The implementation of this new authority remains to be seen, but one thing is certain: it will likely have significant implications for Indonesia’s financial landscape. As the country continues to combat financial crimes, it is essential to strike a balance between national security and individual privacy.