Money laundering watchdog wants greater power

Rendi A. Witular, The Jakarta Post, Jakarta

The country's money laundering watchdog is drafting an amendment to the anti-money laundering law that will provide the agency with more firepower, especially in tracking down ill-gotten funds laundered by state officials.

I Gde Made Sadguna, the Financial Transaction and Report Analysis Center (PPATK) deputy chairman, said such authority was important in view of the possibly large number of state officials involved in corruption.

"We need greater authority to target government officials who launder their funds from corruption or bribes, such as the authority to open and trace their bank accounts," Sadguna said on Wednesday.

The amendment, which would be the second amendment to the law, is expected to be submitted to the House of Representatives later this year.

While acknowledging the change would likely face strong opposition from some government officials and members of the House, Sadguna was optimistic that President Susilo Bambang Yudhoyono would support the amendment.

"We should be suspicious that the opposition from some government officials and lawmakers may indicate that they are afraid of being caught by us laundering their money from corruption," said Sadguna.

Under the current law, the PPATK is tasked with collecting, recording and analyzing all suspicious financial transactions provided by banks and non-bank financial institutions in the country. The PPATK also has the authority to carry out audits of banks and other financial institutions.

However, the agency has no authority to trace bank accounts of suspected money launderers, freeze their assets and/or accounts, monitor phone calls or email, or secretly record conversations involving suspected money launderers.

Sadguna said the country should learn from the anti-money laundering regulations in Thailand, which allow that country's watchdog to target government officials suspected of laundering corrupted funds using all necessary means.

"We are not going to be a 'monster' for government officials. It is just part of our effort to create a clean government and help the country off of the NCC (Non-Cooperative Countries and Territories) list," he said.

Indonesia has been on the list, along with Nauru, Nigeria, the Philippines, Myanmar and the Cook Islands, since 2001, hampering the country's effort to speed up international financial transactions.

The list is issued by member countries of the Financial Action Task Force (FATF), a global anti-money laundering watchdog set up by developed nations of the Organization for Economic Cooperation and Development.

Indonesia has made some attempts to get off the list, such as endorsing the anti-money laundering law and forming a money laundering watchdog.

It was reported on Tuesday that President Susilo would ask member countries of the FATF to remove Indonesia from the non- cooperative list.

Sadguna said one of the concerns of the FATF was that the country had not yet been able to bring a money laundering suspect to court, despite the legal framework for the prosecution of the crime.