Anti-Money Laundering and Counter Financing of Terrorism (AML CFT) - Bank Sentral Republik Indonesia
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November 26, 2020

Background of AML CFT

Financial institutions are very vulnerable to the possibility of being used as a media for money laundering (ML) and terrorism financing (TF), due to many transaction options for perpetrators of crime to commit an offence. Through various transaction options, such as transfer transactions, financial institutions become the entrance of assets that are the proceeds of crime or terrorism financing activities into the financial system which can be utilized for the benefit of perpetrators of crime. For instance, ML perpetrators can withdraw proceed of crime that appear legitimate and conceal the origins of illegally obtained. Whereas, TF perpetrators use proceed of crime to finance terrorist activities.

As the development of products, business model, technology and information become increasingly complex, all Financial Service Providers under the supervision of Bank Indonesia are required to implement the AML and CFT programs optimally and effectively. The AML and CFT program is not only important for eradicating ML and preventing TF, yet also to support the prudential principles which can protect the Service Providers and users from various risks that may arise.

AML CFT to Achieve SPI Vision 2025

The Indonesian Payment System (SPI) 2025 guarantees a balance between innovation and the integrity of the payment system, through the application of Anti-Money Laundering, Counter Financing of Terrorism, and Prevention of Proliferation of Weapon of Mass Destruction Financing as Vision 4 of the SPI 2025 Blueprint "SPI 2025 guarantees a balance between innovation and consumers protection, integrity and stability as well as fair business competition through the application of KYC & AML CFT, the obligation to disclose data/information /public business, and the application of regtech and suptech as obligations in reporting, regulatory and supervisory".

The SPI 2025 Blueprint publication can be downloaded here

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