Anti money-laundering committee established

Anti money-laundering committee established

The Jakarta Post, Jakarta

The government has set up a national committee to coordinate
strategy in combating money laundering following the passage of
the new Money Laundering Law last year.

Under Presidential Decree No. 1/2004, a copy of which has been
obtained by The Jakarta Post, the committee will coordinate the
efforts of various state agencies in preventing and combating
money laundering.

The committee, chaired by the coordinating minister for
political and security affairs, with the coordinating minister
for the economy serving as deputy chairman, will make
recommendations to the president on policies designed to prevent
money laundering.

In performing its duties, the committee will be assisted by a
working group led by the head of the government-backed Financial
Transaction and Report Analysis Center (PPATK).

The PPATK is tasked with investigating reports of suspicious
transactions from the central bank and other financial
institutions.

The members of the committee are the minister of foreign
affairs, minister of law and human rights, director general of
customs and excise, director general of taxation, director
general of financial institutions at the Ministry of Finance, the
governor of Bank Indonesia, the attorney general, and the heads
of the Capital Market Supervisory Board (Bapepam), State
Intelligence Agency (BIN), and the National Police.

The committee can invite representatives of financial
institutions, experts and other external parties to attend its
meetings.

Indonesia has been on the list of uncooperative countries and
territories (NCCTs) drawn up by the Financial Action Task Force
(FATF) since June 2001.

The FATF is a global money-laundering watchdog set up by
developed nations of the Organization for Economic Cooperation
and Development (OECD).

Although Indonesia has passed an amended money laundering law
(Law No. 15/2002), and established the Financial Transaction and
Report Analysis Center (PPATK), the country remains on the list
of non-cooperative countries.

The sanctions that may be imposed on NCCTs include the
imposition of premium charges on transactions with foreign
companies, halting correspondence between Indonesian banks and
their counterparts in FATF countries and rejecting Indonesian
letters of credit.

Analysts said that rampant corruption and weak law enforcement
has turned the country into a safe haven for money launderers and
criminals in general.