To become a FATF member, Indonesia must have strong national financial integrity
Jakarta (ANTARA) – The Presidential Staff Office (KSP) has established a Sectoral Risk Assessment (SRA) Task Force to prevent misuse of corporations for economic crimes, as part of the country’s efforts to accelerate its intention to become a member of the Financial Action Task Force (FATF).
“To become a FATF member, Indonesia must have strong national financial integrity. For this reason, a risk assessment team at the sectoral level is needed so that corporations are not misused for economic crimes,” KSP’s Deputy III Panutan Sulendrakusuma said here on Sunday.
FATF is an institution that creates international standards in the form of laws or regulations on money laundering, terrorism financing, and other economic crimes, Sulendrakusuma said.
He emphasized, Indonesia’s aim for the FATF membership is in line with President Joko Widodo’s (Jokowi’s) directive, as Indonesia is the only G20 member country that has not been a member of FATF, but only as an observer.
Among benefits if Indonesia becomes a FATF member are the country would be more accepted in the international business world and can cooperate in combating money laundering mechanisms and financing terrorism, he added.
He also pointed out, with the membership, Indonesia can participate in determining global standards within the context of developing countries.
The sectoral risk assessment for corporations can be a guideline for regulators in carrying out risk-based supervision (RBS), and for law enforcement officials to conduct a risk-based investigation (RBI) in dealing with risk-based economic crimes.
The supervisions, he said, can also apply to the bank and non-bank financial industries as well as other reporting parties in early detection of money laundering, terrorism financing, and other economic crimes.
There are still obstacles to achieving FATF membership, one of which is the absence of sectoral risk assessment (SRA) on corporations, Sulendrakusuma said.
“All ministries/institutions agreed to achieve strong national financial integrity and Indonesia’s membership in the FATF. The SRA Task Force is commanded by the Ministry of Law and Human Rights, PPATK (The Financial Transaction Reports and Analysis Center), and OJK (Financial Services Authority) and is intensively supervised by the KSP,” he remarked.