Money laundering poses a big threat to world
Money laundering poses a big threat to world
JAKARTA (JP): Indonesia needs effective laws and better law enforcement if it is to combat money laundering, the president of the International Criminal Police Organization says.
Like other countries in the region, Indonesia is prone to money laundering by international criminals, Bjorn Eriksson told reporters at the end of his three-day visit here yesterday.
"In the long run, a great threat is posed by laundering," said Eriksson, who is also chief of the Swedish police and was invited here by the Indonesian police. "But if we have the right type of laws, we can work together to solve the problem."
Money laundering, combined with drug trafficking, is the biggest threat facing crime fighters in the world today, he said.
The money that drug traffickers launder and invest as part of their modus operandi creates unfair competition to law-abiding businesses.
He said Indonesia could argue that, at present, it is only used as a transit point by international drug traffickers. But in the long run, criminals will find Indonesia an attractive place to launder their money, if the laws are not improved soon.
A key part of any plan to combat money laundering should be strict national legislation and effective law enforcement methods, Eriksson said.
It is also crucial to foster cooperation between national law enforcement authorities and banks, and between international bodies, he said.
The secretary of Interpol's Indonesia bureau, Brig. Gen. Sonny Harsono, has said that local police forces are aware of several cases of money laundering.
"But they are not easy to investigate. Banking laws give banks the right to withhold the identities of their customers," Sonny said.
The one-star general said his bureau was often unable to pass on information to other members of the International Criminal Police Organization for the same reason.
"It has given our country a bad reputation in the international community."
Eriksson was also invited to speak at a one-day seminar on money laundering here on Thursday. (bsr)