RI removed from money laundering list<\/p>\n
Rendi A. Witular, The Jakarta Post\/Jakarta<\/p>\n
After four years of pleading by the government, the global money
\nlaundering watchdog, the Financial Action Task Force (FATF), has
\nfinally removed Indonesia from its list of Non Cooperative
\nCountries and Territories (NCCT).<\/p>\n
The announcement is expected to greatly improve international
\nfinancial institutions' confidence in Indonesia, which is still
\nconsidered to be marred by corruption and legal uncertainty.<\/p>\n
Coordinating Minister for the Economy Aburizal Bakrie said the
\ngovernment managed to convince the FATF over its efforts in
\ncomplying with the regulations and recommendations set out by the
\ntask force.<\/p>\n
"I am glad (about their decision) because it will help reduce
\nour country risk," he told the press on Friday at the State
\nPalace.<\/p>\n
The decision was made after the FATF convened in Paris on
\nWednesday to review the list and at the same time decide the fate
\nof Indonesia.<\/p>\n
Since 2001, Indonesia has been on the "black" list along with
\nNauru, Nigeria, the Philippines, Myanmar and the Cook Islands.
\nBut after the meeting, Myanmar, Nauru and Nigeria remained on the
\nNCCT list.<\/p>\n
The other three countries -- Indonesia, the Cook Islands and
\nthe Philippines -- were removed from the list after recent visits
\nby FATF representatives to the countries, confirming that they
\nhave been effectively implementing anti-money laundering
\nmeasures.<\/p>\n
The Paris-based agency, set up by developed nations of the
\nOrganization for Economic Cooperation and Development (OECD),
\nsaid in a statement that the three countries had applied systems
\nwith stricter customer identification, suspicious transaction
\nreporting, bank examinations and legal capacities to investigate
\nand prosecute money launderers.<\/p>\n
In addition to that, the three countries had developed
\nfinancial intelligence units, which analyze financial data,
\ncoordinate national efforts and facilitate international
\ncooperation.<\/p>\n
The FATF will now monitor the implementation of these measures
\nin the three countries to ensure that they sustain their recent
\ncommitments and progress.<\/p>\n
With the decision, Aburizal was hopeful that international
\nrating agencies would eventually upgrade Indonesia's ratings
\nsoon.<\/p>\n
"The decision will enable Indonesia to avoid higher risk
\npremiums and interest rates imposed on the government and local
\nfirms when making transactions with international firms or when
\nissuing bonds or borrowing money," he said.<\/p>\n
Another advantage is that it means there is now little risk of
\na termination of correspondence alliances between domestic banks
\nand banks in member countries of the FATF; and the rejection of
\nletters of credit (L\/Cs) issued by local banks.<\/p>\n
"Other countries will no longer put us on their suspicious
\nlists when doing financial transactions with us," said Aburizal.<\/p>\n
The government has taken several important steps to be
\nexcluded from the noncooperative list, including passing an anti-
\nmoney laundering law and establishing the Financial Transaction
\nand Report Analysis Center (PPATK).<\/p>\n
PPATK has audited the country's financial institutions to
\ndisclose money laundering activities.<\/p>\n
PPATK chairman Yunus Hussein said the FATF had outlined six
\nrecommendations for Indonesia to be immediately implemented in a
\nbid to sustain its position in the future.<\/p>\n
The recommendations include intensifying financial audits for
\nsmall banks, improving the audit process and systems, timely
\nprosecution process, capacity building for PPATK and its tasks,
\ndrafting of a bill on mutual legal assistance for money
\nlaundering suspects and widening the authority of PPATK.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-removed-from-money-laundering-list-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}