Govt to plea for exclusion from money laundering list

Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

The government will again plea to member countries of the Financial Actions Task Force (FATF), an international anti-money laundering group, to exclude Indonesia from the Non-Cooperative Countries and Territories (NCCT) list, highlighting the authorities' efforts in curbing such crime.

President Susilo Bambang Yudhoyono acknowledged various shortcomings and the country's financial institutions' failure to report their financial transactions to the Financial Transaction and Report Analysis Center (PPATK).

The President and PPATK chairman Yunus Hussein agreed on Tuesday to launch high-level diplomacy to FATF member countries.

"We will explain our position and measures taken in fighting corruption and money laundering. We will also point out that many other countries have served as safe destinations for embezzled money but they are excluded from the list," State Secretary Yusril Ihza Mahendra told the press after the meeting.

The government will send letters to the United States, Australia, New Zealand, Japan and Hong Kong on the issue prior to the FATF session in Paris next month.

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

Indonesia has been in the non-cooperative list along with Nauru, Nigeria, the Philippines, Myanmar and Cook Islands since 2001, hampering the country's effort to speed up the international financial transaction process.

The government has made some attempts to get off the list by adopting several measures, but to no avail. They include the drafting of the anti-money laundering law and the establishment of PPATK.

Indonesia has signed the United Nations Conventions on Corruption. It is currently processing the draft law on Mutual Legal Assistance (MLA) for participating countries to provide similar legal facilities in the legal process of corruption cases involving Indonesians living abroad.

"Countries like Singapore, Cayman Islands and Switzerland have never signed the UN convention but have been excluded from the list," Yusril said.

He underlined that the letters to FATF member countries would also point out to those countries' position.

Meanwhile, Yunus said only 75 out of 4,000 financial institutions in the country have reported their financial transactions to his office. The 75 comprise of 67 banks, three foreign exchange companies, three stock exchange companies, a pension fund company and an insurance company.

"We have been asking the ministry of finance to warn other financial institutions to comply with the law. Otherwise, we will impose a penalty on them," he remarked.

Yunus said so far no companies have been brought to justice for violating Law No. 25/2003 on money laundering. "But there are many financial crimes brought to justice under the Criminal Code."