Government to revise bill on money laundering

Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta

The government has decided to revise the bill on money laundering it submitted to the House of Representatives (DPR) in June 2001 in order to widen its scope and fall more into line with international efforts to halt the flow of funds to terrorist groups, an official has said.

Director-general for justice and legislation of the Ministry of Justice and Human Rights Abdul Gani Abdullah said here on Tuesday that the revision had taken into account recommendations proposed by the Financial Action Task Force and other financial institutions.

"The previous draft was considered to be full of loopholes," Abdul Gani told The Jakarta Post.

He said that changes in the revised draft include the general definition of money laundering, which now also covers property apart from funds and wealth. The previous draft described as a crime the practice of transferring ill-gotten wealth into legal investments.

The bill was submitted to the House in June last year before the Sept. 11 terrorist attacks in the United States that set off an international campaign against terrorism.

The new bill also stipulates the establishment of an anti money-laundering office and endorses mutual assessment with other countries' offices in investigating and sharing information on suspicious transfers or investments.

The Financial Action Task Force was formed by G-7 member countries in 1989 to fight money laundering worldwide. To date, its members include 31 industrialized countries.

Indonesia has been put on the task force's blacklist of countries deemed "noncooperative" in tackling money laundering.

Such a classification could prompt financial institutions and donor countries to delay disbursement of fresh loans to the country and inhibit the country's international trade transactions.

According to Abdul Gani, the revised draft would be submitted to the House on Feb. 21 and was expected to be passed by legislators on March 25.

The enactment of an anti money-laundering law is one of the prerequisites set by donor countries belonging to the Paris Club before it can reschedule payment of both interest and principal of Indonesia's foreign debt. The Paris Club members are scheduled to meet in April.