Govt to plea for exclusion from money laundering list
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."