Indonesia joins global efforts to combat financial crimes

FATF President T. Raja Kumar (left), and Head of the Indonesian Financial Transaction Reports and Analysis Centre (INTRAC), Dr Ivan Yustiavandana.
FATF President T. Raja Kumar (left), and Head of the Indonesian Financial Transaction Reports and Analysis Centre (INTRAC), Dr Ivan Yustiavandana.

Jakarta (Indonesia), 9 November 2023 – Indonesia has officially become the 40th member of the Financial Action Task Force (FATF), an intergovernmental organization that aims to combat money laundering, terrorism financing and proliferation financing of weapons of mass destruction. This is a significant achievement that demonstrates Indonesia’s commitment to fight financial crimes and protect the integrity of the global financial system.

The FATF sets the international standards for anti-money laundering and counter-terrorism financing (AML/CFT) and monitors the compliance and effectiveness of its members. By joining the FATF, Indonesia will have access to the latest information and best practices on AML/CFT and will be able to contribute to the development and implementation of the FATF standards.

The Task Force facilitates cooperation and coordination among its members and other stakeholders to prevent and combat the misuse of the financial system by criminals and terrorists. It also conducts peer reviews and mutual evaluations of its members to assess their level of compliance and effectiveness of their AML/CFT regimes. By joining the FATF, Indonesia will undergo regular and rigorous assessments and will receive constructive feedback and recommendations to improve its AML/CFT framework and performance.

The Task Force has been instrumental in raising the global awareness and understanding of the threats and risks posed by money laundering, terrorism financing and proliferation financing. It has played a key role in identifying and addressing the strategic deficiencies and weaknesses of countries and jurisdictions that pose a risk to the international financial system. The FATF has applied measures  and incentives to encourage these countries and jurisdictions to take action and implement reforms to strengthen  their AML/CFT regimes.

Money laundering, terrorism financing and proliferation financing are serious threats to the security and stability of the world. These crimes enable and fuel other crimes such as corruption, drug trafficking, human trafficking, tax evasion, cybercrime, environmental crime and organized crime. These crimes also undermine the rule of law, democracy and human rights and erode the trust and confidence in the integrity and stability of financial systems and the legitimate economy as criminals seek to exploit the complexities of the global financial system and differences in national legislative frameworks.

UNODC, through its Global Programme against Money Laundering, Proceeds of Crime and the Financing of Terrorism (GPML), has been a long-standing partner of Indonesia in strengthening its efforts to combat illicit financial flows and financial crimes. UNODC has provided technical assistance and capacity building to various public and private sector stakeholders involved in AML/CFT, such as law enforcement, prosecutors, regulators, financial institutions and non-financial businesses and professions. UNODC has also facilitated dialogue and cooperation between Indonesia and other countries and regional and international organizations on AML/CFT issues. UNODC has also engaged in policy dialogue and advocacy on emerging and priority topics such as virtual assets, public-private partnerships and asset recovery.

UNODC is honoured to have been part of this process and looks forward to continuing its partnership with Indonesia in the fight against financial crimes. UNODC acknowledges the support and contributions of its donors and partners, such as Norway, the United States, Germany, Egypt and the United Kingdom, who have provided financial and technical assistance to UNODC and Indonesia in this endeavour.