Indonesia Becomes Member of International Watchdog, FATF

The international money laundering watchdog, FATF, includes Indonesia as its member state, in a group of 40 countries, to collaborate and secure the integrity of the global financial ecosystem. 

The Financial Action Task Force (FATF) has officially included Indonesia to enhance the security and collaboration between the countries. The global financial organisation wants to promote awareness about money laundering and terrorist financing worldwide. The intergovernmental institute is also responsible for the instability of the global financial system and for developing strict recommendations to prevent financial crimes. FATF members are more trusted and attractive to international investors, which leads countries to boost their economies. According to the Indonesian president, Joko Widodo, “praise be to God, Indonesia has been accepted by acclamation as the 40th member of the FATF. The membership is pivotal to boost the positive perception towards Indonesia’s financial system, which will in turn increase [businesses’] confidence and trust towards our country’s business and investment climate.”

The FATF examines Indonesian financial institutes’ investors and their AML system to control terrorist financing and the proliferation of illegal mass weaponisation. The watchdog also embraces top foreign investors such as China, Japan, and the US. Indonesia applied for a seat in the FATF delegation in 2017 after a series of investigations, including the onsite visit conducted by the organisation. FATF stated Indonesia is serious about strengthening its anti-money laundering and counter-terrorism financing measures. It also demonstrates the country’s commitment to global cooperation in the fight against economic crimes. The president added, “hopefully, this will be the first step towards better governance of an anti-money laundering and terrorism financing regime in Indonesia.”

Indonesia also claimed they comply with strict futuristic regulations to prevent financial institutes from economic scams. President stated that the collaboration between law enforcement agencies and regulatory authorities would be enhanced to investigate financial crimes. Indonesia has also promised to increase funding to law enforcement agencies and the economic sector to enhance risk assessments. The president also called for financial institutions to be more vigilant and proactive in preventing money laundering and terrorism financing.

Suggested Reads: 

INDONESIA TO PASS REGULATIONS TO CONTROL MONEY LAUNDERING

INTERNATIONAL STUDENT SUES COMMONWEALTH BANK FOR MONEY LAUNDERING SCAM

FATF DISCLOSES OUTCOMES OF OCTOBER PLENARY MEETING