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Indonesia joins money laundering watchdog FATF

Jakarta Globe - November 6, 2023

Jayanty Nada Shofa, Jakarta – Indonesia has officially become a member of the global money laundering and terrorist financing watchdog, the Financial Action Task Force (FATF).

This intergovernmental organization seeks to promote global standards to mitigate risks and assess whether countries have put in place effective measures against money laundering and terrorism financing. FATF also makes recommendations to help countries combat such crimes. According to President Joko "Jokowi" Widodo, the FATF member status is expected to make Indonesia more attractive to investors.

"Praise be to God, Indonesia has been accepted by acclamation as the 40th member of the FATF," Jokowi said in a video statement on Monday.

"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," Jokowi said.

The president added: "Hopefully, this will be the first step towards a better governance of an anti-money laundering and terrorism financing regime in Indonesia."

The FATF encompasses major economies and Indonesia's top foreign investors such as China, Japan, Singapore, and the US, among others. The group in February suspended Russia's membership over the war in Ukraine. Indonesia officially applied for a seat at the FATF in 2017. The Southeast Asian country then underwent a series of reviews. Indonesia also had an on-site visit by the FATF assessors before finally joining the money laundering watchdog.

Just last week, the National Police charged controversial Muslim cleric Panji Gumilang under the anti-money laundering law after allegedly raising funds using many aliases on behalf of his foundations. Last month, the Corruption Eradication Commission (KPK) began the money laundering investigation against former Agriculture Minister Syahrul Yasin Limpo.

Source: https://jakartaglobe.id/news/indonesia-joins-money-laundering-watchdog-fat