Synopsis of the proposed money laundering bill
JAKARTA (JP): The government has presented the much-awaited money laundering bill to the House of Representatives for deliberation in a move to combat money laundering practices. The following is a synopsis of the bill, that consists of 10 chapters and 52 articles.
Background to the drafting of the bill on money laundering:
* An increasing number of crimes produce and involve a huge amount of funds, both inside the country and across its borders.
* The sources of funds collected from criminal activities are concealed or disguised through various means, known as money laundering.
* Money laundering must be prevented and eradicated so that the frequency of crimes that produce huge amounts of funds could be minimized so that national economic stability and security could be maintained.
* Indonesia, as part of the international community, strives to prevent and eradicate money laundering based on inter- governmental agreements.
Money laundering is the laundering of money generated from corruption, bribery, smuggling, banking-related crimes, narcotics-related crimes, psychotropic substances-related crimes, human trafficking, gambling and terrorism.
Money launderers are:
* Anyone who intentionally conceals or disguises the origin of funds or money derived from criminal activities either under his or her own name or other parties by placing the funds in financial institutions, transferring it from one financial institution to another, disbursing, giving or donating and entrusting the funds to another party, carrying the money out of the country or exchanging the money with other foreign currencies or securities.
* Anyone who receives and owns the funds, donations, assistance, loans or other kinds of funds clearly or allegedly derived from criminal activities.
* Anyone who helps or cooperates in money laundering.
* Anyone outside Indonesian territory who provides help, opportunities, facilities or information to facilitate money laundering.
Those who are convicted of committing money laundering crimes will be subject to a minimum jail sentence of five years and a maximum of 15 years and fines of between Rp 5 billion and Rp 15 billion.
* Anyone who deliberately divides a cash transaction into smaller transactions to avoid the obligation of reporting the transaction, will be subject to a minimum jail sentence of three years and a maximum of 10 years and fines of between Rp 3 billion and Rp 10 billion.
* In the case where the crimes are committed by or under the name of a corporation, the charges, sentences and fines would be made against the corporation and or the management.
Crimes that are related to money laundering:
* Financial institutions that fail to report suspicious transactions or transactions with a value of Rp 100 million and above will be subject to fines of between Rp 250 million and Rp 1 billion.
* Witnesses, prosecutors, judges or other people associated with a money laundering case under investigation who breach the regulation that prohibits revealing the identity of those who report the money laundering case will be subject to a jail sentence of three years and a fine of Rp 150 million.
The Commission to Combat Money Laundering (KPTPPU)
* KPTPPU has been established to prevent and eradicate money laundering crimes. KPTPPU is an independent institution and is accountable to the House of Representatives.
* In carrying out its duties, KPTPPU is free from government intervention or the intervention of any other party. In carrying out his or her duties, the KPTPPU chairman is obliged to reject any intervention from any party.
* KPTPPU is located in the capital of the Republic of Indonesia and can have offshore representative offices.
* To help in the performance of its duties, KPTPPU is assisted by the Secretariat and the Center for the Reporting and Analysis of Financial Transactions (PPATK).
The duties of KPTPPU are:
* To seek facts and evidence related to money laundering;
* To cooperate with the police, the Attorney General's Office and other parties;
* To evaluate reports of suspicious financial transactions to detect early evidence of money laundering;
* To give suggestions and advise to the government regarding policy to prevent and curb money laundering;
* To produce guidelines and publications related to efforts to prevent and eradicate money laundering;
* To report its work to the House of Representatives, with a copy sent to Bank Indonesia, at least once every six months.
The jurisdiction of the KPTPPU encompasses:
* Receiving reports of suspicious financial transactions from financial institutions and other parties that conduct the transactions;
* Conducting investigations into financial institutions and other parties that conduct transactions, by reviewing records, copying whole reports or records and questioning their personnel;
* Making guidelines, regulations and criteria about suspicious financial transactions. Compiling statistical data and disseminating information to financial institutions or other parties;
* Conducting other legal measures for the purpose of investigations;
* Filing recommendations with Bank Indonesia to impose administrative sanctions against banks, to the minister of finance to give administrative sanctions against nonbank financial institutions, and related authorities to give administrative sanctions against other companies.
Administrative sanctions cover written warnings; fines, temporarily freezing of a company's operations and revocation of licenses.
The Organizational Structure of KPTPPU
* The structure of KPTPPU consists of one chairperson, at least 2 deputy chairpersons and 11 members.
* The chairperson and deputy chairperson are appointed by the President after approval by the House of Representatives.
* The term of KPTPPU members is five years and they may be appointed again for another term.
Reporting
* Financial institutions are obliged to report to KPTPPU whenever they receive cash of Rp 100 million or more, foreign currencies worth Rp 100 million or receive payment, deposits or transfers of funds clearly or allegedly derived from criminal acts. They must report those transactions within 14 working days from the date of the transaction.
* The Directorate General of Customs and Excise is required to give monthly reports to KPTPPU providing details about people who bring in or out of the country cash of Rp 100 million and above.
Investigation, Prosecution and Trial
* Investigation, trial and prosecution against money laundering crimes will be conducted in accordance with the current criminal proceedings act, unless clearly stated otherwise in the bill.
* KPTPPU is the only institution that has the jurisdiction to investigate money laundering crimes.
* For the purposes of investigation, prosecution and trial, a suspect or defendant can prove that his or her money is not derived from criminal activities.
* During a trial, if a suspect or defendant fails to appear before the court after three summons without valid reasons, the trial can proceed without the presence of the defendant.
Premium for those who file reports
A premium is offered to anyone or any corporation that files a report to KPTPPU about suspected money laundering, when after all legal processes it is proven to be correct.
Protection for those who file reports
Anyone that files a report or testifies about suspected money laundering crimes must receive protection from possible threats that could endanger his or her life and the lives of his or her family.
International cooperation
For the purpose of investigation, prosecution and trial, bilateral or multilateral cooperation may be established with other countries in accordance with prevailing regulations. (rid)