This content is from: Local Insights

Money Laundering Act approved

Freddy KaryadiOene Marseille

In October the Indonesian parliament approved a new prevention and eradication of money laundering law. It will replace the 2002 law.

There are various notable provisions in the New Money Laundering Act which were not found in the previous act, which include the following.

(i) A greater role and power for the Financial Transaction Reports Analysis Center (PPATK), including authority to freeze suspicious financial transactions while indications of money laundering or other crimes are examined by PPATK. The suspension can be applied to the whole or part of the transaction.

(ii) Involvement of a larger group of officials in comprehensively working on preventing and eradicating money laundering. The tax and custom authority, the Corruption Eradication Commission and the National Narcotics Agency (BNN) are now involved in preventing and eradicating money laundering by means of cooperating directly with PPATK.

(iii) Any relevant investigators and prosecutors will now receive reports from PPATK, enabling them to pursue suspected money laundering.

(iv) The inclusion of several new parties in those required to comply with the obligation to report suspicious transactions to the PPATK.

(v) The introduction of a reverse of burden of proof; the party allegedly engaged in money laundering must prove that the assets were not resulted from a crime.

(vi) The establishment of regional prevention and eradication units by giving each region the opportunity to establish its own PPATK to make it easier for regional law enforcers to combat money laundering in their own city or province.

Oene Marseille and Freddy Karyadi

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