It will strengthen investors’ trust in our business and investment sector internationally.
Jakarta (ANTARA) - Coordinating Political, Legal, and Security Affairs Minister Mahfud MD emphasized the importance of Indonesia's membership in the "Financial Action Task Force on Money Laundering" (FATF) to create a positive image of the nation’s financial system.

"It will strengthen investors’ trust in our business and investment sector internationally," the minister stated at the launch of the 2021 Indonesian Risk Assessment at the Financial Transaction Reports and Analysis Centre (PPATK) office here on Thursday.

Currently, the coordinating minister is also the head of the National Coordinating Committee for the Prevention and Eradication of Money Laundering Crimes.

Furthermore, he noted that the assessment was not only an attempt to secure Indonesia’s membership in the FATF but was also expected to serve as the basis for developing national policies to prevent and eradicate money laundering as well as terrorism and the financing of proliferation of weapons of mass destruction.

The progress made by Indonesia in tackling crimes had been reviewed by the FATF on the basis of the nation’s report of a mutual evaluation review through the Asia Pacific Group on Money Laundering in 2018, he noted.

Related news: Former head of PPATK discusses money laundering cases

The report measures Indonesia's compliance with FATF’s 40 Recommendations and effectiveness of the anti-money laundering and terrorism financing prevention system in the country.

According to the result of the Basel Anti-Money Laundering Index -- an independent annual ranking published by the Basel Institute on Governance -- Indonesia’s money laundering risk had declined, from 5.73 in 2018 to 4.62 in 2020.

"We have to capitalize on this great momentum by strengthening national cooperation to increase the effectiveness of prevention and eradication of money laundering as well as terrorism and weapons proliferation financing in Indonesia, so that we can maintain integrity and stability of the national economic and financial system," according to Mahfud.

Meanwhile, Head of PPATK, Dian Ediana Rae, accentuated the importance of updating the document of National Risk Assessment on Money Laundering and Terrorist/Proliferation Financing 2021.

"It is very crucial for all stakeholders of the anti-money laundering and counter-terrorism financing regime to identify, analyze, and evaluate various financial risks within the scope of inward and outward risks," he stressed.

Related news: BI and Philippine central bank sign MoU on money laundering


Translator: Syaiful Hakim, Uyu Liman
Editor: Rahmad Nasution
Copyright © ANTARA 2021