Funds from BNI scam laundered in stock market

Funds from BNI scam laundered in stock market

The Jakarta Post, Jakarta

Market watchdogs have traced "dirty money" worth Rp 11.4
billion (US$1.35 million), which has been laundered through the
local stock market, a senior official said on Thursday.

Capital Market Supervisory Agency (Bapepam) chairman
Herwidayatmo said his organization and the Financial Transaction
and Report Analysis Center (PPATK) had discovered the money.

The funds were believed to have been embezzled from a Bank
Negara Indonesia (BNI) Rp 1.7 trillion export credit facility and
were allegedly stolen by a number of businessmen.

"Bapepam and PPATK have found indications some of the BNI
funds are being laundered in the local stock market, in mutual
funds and in bonds," Herwidayatmo said.

The funds were invested before the graft case was discovered
in October last year, he said.

Bapepam and PPATK were now investigating several brokers and
investment fund managers believed to be involved in the
laundering. The agencies could not disclose their names to the
public because it could jeopardize the investigations, he said.

PPATK had previously said the "dirty money" being laundered
through the stock market might have been a key driver behind the
recent surge in the stock market index.

PPATK is tasked with collecting, recording and analyzing all
information reported by financial service providers -- banks and
non-banks -- for suspicious transactions.

If their probes indicate criminal activity, their findings are
forwarded to the police or Attorney General's office for further
investigation.