No.22/66/DKOM 

The Indonesian Financial Transaction Reports and Analysis Centre (INTRAC) and Bank Indonesia are firmly committed to maintaining financial system integrity and stability in order to stimulate economic growth by preventing and eradicating money laundering and terrorism financing in the financial sector and payment system in Indonesia. That was the key takeaway of the Coordination Meeting between the Indonesian Financial Transaction Reports and Analysis Centre (INTRAC) and Bank Indonesia today (26/8) in Jakarta, attended by the INTRAC Chairperson, Dian Ediana Rae, and Bank Indonesia Deputy Governor, Sugeng. The meeting agenda included an evaluation of the joint measures undertaken by INTRAC and Bank Indonesia to support financial system integrity and stability in order to stimulate economic growth by preventing and eradicating money laundering and terrorism financing in the financial sector and payment system in Indonesia.

INTRAC Chairperson, Dian Ediana Rae, emphasised the importance of the coordination meeting with Bank Indonesia to maintain the integrity of an efficient and secure payment system, encompassing cash, funds transfers, electronic money and cashless payment systems, such as digital payment services. Ultimately, sustainable growth of the financial system, payment system and even economic system depends heavily on the degree of integrity maintained.

Bank Indonesia Deputy Governor, Sugeng, took the opportunity to reiterate Bank Indonesia’s support and commitment for the prevention and eradication of money laundering, terrorism financing as well as the proliferation of weapons of mass destruction. Such commitment is consistent with the Indonesia Payment System Vision for 2025, namely to maintain an optimal balance between payment system innovation and financial system integrity through the principles of Know Your Service User and Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF). Through commitment, Indonesia's credibility and reputation within the international community will increase, thus strengthening the investment climate in Indonesia.

In addition to reinforcing prevention and eradication efforts, the coordination meeting also discussed Indonesia's preparations as a member of the international organisation, Financial Action Task Force (FATF), as well as the arrival of the FATF assessors planned for November 2020. Furthermore, cross-border cash carrying (CBCC) was also discussed at the meeting, for which an effective supervisory system demands close coordination between Bank Indonesia, INTRAC and the Directorate General of Customs and Excise (DJBC). INTRAC and Bank Indonesia also agreed to extend coordination through technical-level meetings, while simultaneously drafting extensions of the Memorandum of Understanding (MoU) and Cooperation Agreement between INTRAC and Bank Indonesia.

Pursuant to Act No. 8 of 2010 concerning the Prevention and Eradication of Money Laundering, Bank Indonesia is mandated as the Supervisory and Regulatory Institution for reporting parties in the form of non-bank institutions acting as issuers of card-based payment instruments, e-money issuers, e-wallet operators, funds transfers providers as well as non-bank money changers. In practice, Bank Indonesia ensures that reporting parties under its authority are protected from perpetrators of money laundering and terrorism financing through the principles of Know Your End User along with mandatory reporting to INTRAC, including the Suspicious Financial Transactions Report (LTKM). In this current digital era, FinTech operators are also subject to the mandatory AML/CTF program. Bank Indonesia policy to advance a less cash society and provide financial services to all corners of the archipelago (financial inclusion) certainly require the support of strategic measures to ensure such activities are not subverted by money laundering and terrorism financing.

Jakarta, 26th August 2020