Money laundering is the process that criminals use to "clean" the money they make from crimes, such as fraud, dealing in illegal drugs, and tax evasion.
People, who finance terrorism, use similar methods to channel funds to money launderers for violent causes and to disguise those who provide and receive the money.
Hence, the International Monetary Fund, in recent years, has been assuming a greater role in anti-money laundering and combating the financing of terrorism.
In its commitment to eradicating money laundering and terrorism financing, Indonesia is involved in the Association of the Asia Pacific Group on Money Laundering, which has 41 member countries.
This organization seeks to ensure that each member country, including Indonesia, is actively pursuing standards of action established in anti-money laundering policies, terrorism financing, and widespread funding of weapons of mass destruction.
While attending the 21st annual meeting of Asia Pacific on Money Laundering in Nepal on July 21-27, 2018, in Nepal, National Police Chief General Tito Karnavian underlined the importance of the state in actively implementing standards of action to combat money laundering and terrorism financing.
During the meeting, there was a plan to hold an additional agenda for the implementation of a Financial Action Task Force (FATF) assessment of several countries to be evaluated and determined to become FATF members, one of which is Indonesia.
"It is very important for Indonesia to be a part of the FATF membership, as it is aligned with other countries, especially G20," Karnavian remarked.
According to the National Police chief, the results of a good evaluation will encourage a rise in investment assessment of Indonesia, so it is expected to boost investment, bilateral, and reciprocal transactions.
In addition to being a keynote speaker at a special meeting to discuss the importance of regional cooperation in combating terrorist financing, Karnavian provided direct support to the Indonesian delegation team led by the Head of Financial Transaction Reporting and Analysis Center.
This is intended to demonstrate Indonesia`s seriousness in combating money laundering and terrorism financing, the National Police chief noted.
"Hence, it will give confidence to the Financial Action Task Force (FATF) appraiser that Indonesia is serious and very helpful in supporting the efforts made to become a member of the FATF," Karnavian stated.
Indonesia has officially become an observer at the FATF, an inter-state cooperation forum aimed at establishing the global standard of anti-money laundering regimes and the prevention of terrorism financing.
The establishment of Indonesia as an observer was set at the Financial Action Task Force-Middle East and North Africa Financial Action Task Force Joint Plenary Meeting in Paris, France.
The support for Indonesia was delivered by a consensus by several FATF members, including Portugal, New Zealand, Singapore, China, Germany, Australia, the United States, Britain, and Russia.
This appointment marks the international recognition of Indonesia`s strategic role in preventing and combating money laundering crimes, terrorism financing, proliferation of weapons of mass destruction, and other matters that threaten the international financial system.
"Indonesia shows great enthusiasm and commitment in upholding anti-money laundering and anti-terrorism financing regimes," FATF President Santiago Otamendi remarked in a discussion session on Indonesia`s membership.
This appointment is a positive result of the FATF high-level delegation`s visit to Jakarta in May 2018, led by the president of FATF.
During the visit, the FATF delegation met various top Indonesian leaders of relevant ministries and agencies to assess Indonesia`s commitment to implementing anti-money laundering and terrorism funding prevention standards.
The inauguration of Indonesia as a FATF observer has a significant meaning since it is time for Indonesia, being one of the major economic forces of the world and a member of the G20, to participate in strategic policy-making processes that determine the international financial system.
Indonesia welcomes the FATF decision and will subsequently undergo the FATF Mutual Evaluation Review process for assessing compliance on anti-money laundering and terrorism financing regimes as a further step towards being a full member of the FATF.
With the observer status, Indonesia is allowed to participate in FATF activities and directly provide inputs at FATF meetings.
President Joko Widodo (Jokowi) has urged the people to cooperate with security agencies in fighting terrorism.
Being aware that terrorism still exists in our country, President Jokowi has called on the entire community to cooperate with security agencies to solve the problem.
The government had made every effort to deal with terrorism through soft and hard approaches.
President Jokowi has said acts of terrorism pose a threat that law enforcement agencies must deal with properly.
In the meantime, Arsul Sani, a member of the House Commission III, has stated that cooperation between Indonesia and other countries in fighting radicalism and terrorism should continue to be improved in order to overcome its spread.
The politician from the United Development Party believes that radicalism developing in Indonesia is a transnational ideology and a product imported from certain countries.
Hence, the National Counter-terrorism Agency should be able to identify the origin of radicalism and to fight against its spread by improving cooperation with other countries.
(O001/INE)
(T.O001/A/KR-BSR/F001)
Reporter: Otniel Tamindael
Editor: Heru Purwanto
Copyright © ANTARA 2018
