PPATK steps up anti-money laundering drive

Dadan Wijaksana, Jakarta

The Financial Transaction and Report Analysis Center (PPATK), the country's money laundering watchdog, has joined The Edgmont Group, an international anti-money laundering group, in fighting the illegal practice.

"It's a step forward for the country in its efforts to improve international cooperation in the anti-money laundering drive," PPATK spokesman M. Natsir Kongah said on Friday.

By joining the Brussels-based group -- which was set up in 1995 and now has 94 member countries -- Indonesia can access data and information compiled by other members on money laundering.

"Aside from being a forum for members to share financial intelligence, the group also provides various courses and training for employees of member nations," Natsir said.

Indonesia established the PPATK in 2002 to meet a request from several developed countries that it join the global anti-money laundering drive, as its legal and financial infrastructure could be vulnerable to manipulation by money launderers.

The PPATK is tasked with collecting, recording and analyzing all information reported by financial service providers in suspicious transaction reports (STR) and cash transaction reports (CTR). Reports that indicate criminal activity are forwarded to the police or the Attorney General's Office, for further investigation.

Law No. 25/2003 on money laundering defines the practice as converting money generated from corruption, bribery, smuggling, banking crimes, drug-related crimes, people trafficking, gambling and terrorism into legal investments.

Natsir said that by joining the group, Indonesia could also increase its chances of being cut from the non-cooperative countries and territories (NCCT) list of the Paris-based Financial Action Task Force (FATF).

The FATF is a global money laundering watchdog set up by developed nations of the Organization for Economic Cooperation and Development (OECD). Indonesia has been on the NCCT list since June 2001. Being on the NCCT list, it may face sanctions such as the imposition of premium charges on Indonesian firms for transactions with foreign companies, the halting of correspondence between Indonesian banks and their counterparts in FATF countries and the rejection of Indonesian letters of credit.

"Hopefully, the FATF will see this as the government's continued commitment toward combating money laundering," Natsir said

However, FATF announced on Friday that Indonesia remained on the list of those that have failed to take strong measures to stamp out money laundering and terror financing. The other countris are the Cook Islands, Myanmar, Nauru, Nigeria and the Philippines, according to AFP.

Elsewhere, Natsir said the PPATK had so far received 741 STRs -- mostly from banks -- 109 of which were being processed by the National Police.