Indonesia still 'non cooperative' on money laundering<\/p>\n
Tony Hotland, The Jakarta Post, Jakarta<\/p>\n
International money-laundering watchdog Financial Action Task
\nForce (FATF) decided on Friday to retain Indonesia and five other
\nnations on its list of non-cooperative countries and territories
\nin the battle against money laundering.<\/p>\n
No immediate details were available on specifically why the
\nParis-based organization decided to keep Indonesia on its list of
\nuncooperative countries, despite Indonesia's recent amendment to
\nthe money laundering law.<\/p>\n
Indonesia's Financial Transaction and Report Analysis Center
\n(PPATK) chairman Yunus Husein said on Friday there were three
\nnagging problems that the country had to resolve in order to get
\noff the list.<\/p>\n
First, Indonesia's money-laundering law must identify clearly
\nand in greater detail, any transaction that can be categorized as
\nmoney laundering and must impose harsh sanctions on violators.<\/p>\n
Next, the adoption of mutual legal cooperation with other
\ncountries regarding money laundering, and thirdly, there must be
\nan operable reporting system on suspicious financial transactions
\nby banks to the central bank, or Bank Indonesia.<\/p>\n
Yunus also said that PPATK had sent an invitation to FATF to
\nsend its representatives to Indonesia and review the
\ninfrastructure, including laws and regulations, as well as the
\nefforts already adopted by the government to stamp out money-
\nlaundering practices in the country.<\/p>\n
He said FATF had agreed to send their envoys, possibly in
\nJanuary 2005.<\/p>\n
\"Hopefully, after they come here and have discussions with us,
\nthey will remove us from the list in their next meeting in
\nFebruary,\" Yunus explained.<\/p>\n
Besides Indonesia, according to an AFP report, those remaining
\non the list are the Cook Islands, Myanmar, Nauru, Nigeria and the
\nPhilippines.<\/p>\n
However, the FATF decided to withdraw counter-measures against
\nMyanmar and Nauru as the two nations \"have now introduced new
\nmeasures to remedy deficiencies\", but would keep them on the list
\nuntil further measures were taken.<\/p>\n
FATF president Jean-Louis Fort told a news conference that
\nMyanmar had adopted mutual assistance legislation and that Nauru
\nhad taken important steps to stamp out offshore banks.<\/p>\n
FATF was set up by developed nations of the Organization for
\nEconomic Cooperation and Development. Indonesia has been on the
\nlist of non-cooperative countries since June 2001.<\/p>\n
Being on the list, Indonesia is considered a high-risk country
\nto make financial transactions in. Consequently, international
\nfinancial institutions often impose premium charges on
\ntransactions involving Indonesian financial institutions.<\/p>\n
Also, being on the list often makes it very difficult for
\nIndonesians living overseas to open accounts, especially in
\nbranches of multinational financial institutions.<\/p>\n
Indonesia has made some attempts to get off the list by
\nadopting a number of measures, but to no avail. They include the
\ndrafting of the anti-money laundering law and the establishment
\nof PPATK.<\/p>\n
Under the law, PPATK is tasked with collecting, recording and
\nanalyzing all suspicious financial transactions provided by banks
\nand non-bank financial institutions in the country.<\/p>\n
PPATK has the authority to carry out audits on banks and other
\nfinancial institutions and freeze assets and\/or accounts
\nbelonging to suspected money launderers.<\/p>\n
It is also authorized to monitor phone calls and e-mail, as
\nwell as to secretly record interviews or conversations involving
\nsuspected money launderers.<\/p>\n
Yunus said he hoped that the new government under President
\nSusilo Bambang Yudhoyono would do something to lift Indonesia off
\nof the list of non-cooperative countries.<\/p>\n
\"I'm sure Pak Susilo understands the urgency of this issue
\nsince he was the leader of the committee when he was still the
\nCoordinating Minister for Political and Security Affairs,\" he
\nsaid.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesia-still-non-cooperative-on-money-laundering-1447893297",
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"sponsor": "Okusi Associates",
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