Beneficial ownership rules aim to prevent money laundering and terrorism financing
Ternate (ANTARA) - Beneficial ownership is one of the strategic measures supporting national efforts to prevent money laundering, terrorism financing, and corrupt practices concealed behind corporate ownership structures.
The Head of the North Maluku Regional Office of the Ministry of Law, Budi A Situngkir, said in Ternate on Tuesday that mitigating the risks of money laundering and terrorism financing through beneficial ownership disclosure is of critical importance.
"The Ministry of Law plays a role in preventing money laundering and terrorism financing through beneficial ownership. These crimes can threaten the stability and integrity of the economic and financial systems, and endanger the foundations of society and the state," he stated.
He explained that the concept of beneficial ownership focuses on identifying who truly controls or benefits from a legal entity or corporate body, even if they are not formally registered as the legal owner in official documents.
According to him, this policy represents a form of transparency aimed at opening up corporate ownership structures so they cannot be misused by parties seeking to conceal assets derived from criminal activity.
"There have been many cases where a company was established merely as a front, whilst the actual controller operates behind the scenes. With beneficial ownership disclosure, the state can trace who is behind every economic activity that potentially causes losses to the state," he said.
He further explained that the implementation of beneficial ownership policy is governed by Presidential Regulation No. 13/2018 on the Application of the Principle of Identifying Beneficial Owners of Corporations in the Prevention and Eradication of Money Laundering and Terrorism Financing.
The regulation requires every corporation to identify and report the individual who holds ultimate control over the company's ownership structure to the Ministry of Law through the legal entity administration system.
He stated that his office also plays an active role in providing guidance and conducting outreach to notaries, business operators, and the wider public regarding the importance of beneficial ownership reporting.
"It is hoped that stakeholders will understand the legal obligations that must be fulfilled, and recognise the importance of ownership transparency in creating a clean and healthy business climate," he said.
The office continues to promote this role as part of its commitment to building an integrity zone. The objective is to encourage openness, integrity, and accountability in all legal and business activities. Beneficial ownership transparency serves as a crucial foundation in the collective effort to create an Indonesia free from corruption and money laundering.
The Head of the North Maluku Regional Office of the Ministry of Law, Budi A Situngkir, said in Ternate on Tuesday that mitigating the risks of money laundering and terrorism financing through beneficial ownership disclosure is of critical importance.
"The Ministry of Law plays a role in preventing money laundering and terrorism financing through beneficial ownership. These crimes can threaten the stability and integrity of the economic and financial systems, and endanger the foundations of society and the state," he stated.
He explained that the concept of beneficial ownership focuses on identifying who truly controls or benefits from a legal entity or corporate body, even if they are not formally registered as the legal owner in official documents.
According to him, this policy represents a form of transparency aimed at opening up corporate ownership structures so they cannot be misused by parties seeking to conceal assets derived from criminal activity.
"There have been many cases where a company was established merely as a front, whilst the actual controller operates behind the scenes. With beneficial ownership disclosure, the state can trace who is behind every economic activity that potentially causes losses to the state," he said.
He further explained that the implementation of beneficial ownership policy is governed by Presidential Regulation No. 13/2018 on the Application of the Principle of Identifying Beneficial Owners of Corporations in the Prevention and Eradication of Money Laundering and Terrorism Financing.
The regulation requires every corporation to identify and report the individual who holds ultimate control over the company's ownership structure to the Ministry of Law through the legal entity administration system.
He stated that his office also plays an active role in providing guidance and conducting outreach to notaries, business operators, and the wider public regarding the importance of beneficial ownership reporting.
"It is hoped that stakeholders will understand the legal obligations that must be fulfilled, and recognise the importance of ownership transparency in creating a clean and healthy business climate," he said.
The office continues to promote this role as part of its commitment to building an integrity zone. The objective is to encourage openness, integrity, and accountability in all legal and business activities. Beneficial ownership transparency serves as a crucial foundation in the collective effort to create an Indonesia free from corruption and money laundering.