Indonesia officially becomes FATF’s 40th member, President Jokowi tweet
Jakarta (ANTARA) – Indonesia has officially become the 40th permanent member of the Financial Action Task Force (FATF), President Joko Widodo (Jokowi) announced on Monday.
“I would like to convey good news as a result of the negotiations in Paris last October. Thank God, Indonesia was accepted by acclamation as the 40th permanent member of FATF,” he stated at the Merdeka Palace, Jakarta.
Kabar baik datang dari Paris, Prancis: Indonesia diterima secara aklamasi sebagai anggota tetap ke-40 Financial Action Task Force (FATF). Keputusan tersebut diambil oleh pihak FATF setelah perundingan di Paris akhir Oktober.
Keanggotaan tersebut penting untuk meningkatkan… pic.twitter.com/LFIv9517X3
— Joko Widodo (@jokowi) November 6, 2023
FATF is an international organization focused on global efforts to eradicate criminal acts of money laundering, terrorism financing, and funding the proliferation of weapons of mass destruction.
The president noted that Indonesia’s FATF membership is important to increase positive perceptions of the Indonesian financial system.
Increasing positive perceptions of Indonesia’s financial system will encourage confidence and trust in the business and investment climate in the country, he remarked.
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“It is very important to increase positive perceptions towards the Indonesian financial system. It will help to boost confidence and trust in our business and investment climate, Jokowi remarked.
The head of state also lauded the National Coordinating Committee for the Prevention and Eradication of Money Laundering and other stakeholders for their hard work and commitment to realize Indonesia’s goal of becoming an FATF official member.
“We hope that this will be the first step towards better governance of Indonesia’s anti-money laundering regime and prevention of terrorist financing,” the president stated.
According to the official website of the Financial Transaction Reports and Analysis Center (PPATK), by joining as a permanent member of the FATF, Indonesia will be able to make a broad contribution to determine global strategic policies related to Anti-Money Laundering and Prevention of the Financing of Terrorism (APUPPT) that can further emphasize Indonesia’s position as a country with integrity and capable of actively contributing to the international arena.
FATF’s History
The Financial Action Task Force (FATF) was established in 1989 by the G7 to examine and develop measures to combat money laundering. It originally included the G7 countries, the European Commission and eight other countries. Click here to see the Economic Declaration from the G7 Summit in July 1989.
The FATF was given responsibility to examine money laundering techniques and trends, review the action already taken at a national or international level, and to set out measures needed to combat money laundering. In 2001, the FATF expanded its mandate to also combat terrorist financing.
The Financial Action Task Force (FATF) Work, Standards & Methods
The Financial Action Task Force (FATF) leads global action to tackle money laundering, terrorist and proliferation financing.
The FATF researches how money is laundered and terrorism is funded, promotes global standards to mitigate the risks, and assesses whether countries are taking effective action.
The methods used to launder the proceeds of criminal activities and to finance illicit activities are in constant evolution. As the international financial sector implements the FATF standards, criminals must find alternative ways to launder their dirty money.
The FATF carries out research into evolving methods and trends to assist countries in identifying, assessing and understanding their money laundering and terrorist financing risks. Once these risks are properly understood, countries will be able to implement more effective measures to mitigate the risks.
FATF mutual evaluations are in-depth country reports analysing the implementation and effectiveness of measures to combat money laundering, terrorist and proliferation financing. The reports are peer reviews, where members from different countries assess another country. Mutual evaluations provide an in-depth description and analysis of a country’s anti-money laundering and counter-terrorist financing system, as well as focused recommendations to further strengthen its system.
During a mutual evaluation, the assessed country must demonstrate that it has an effective framework to protect the financial system from abuse.