Government to revise bill on money laundering

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.