Indonesia

New Documents

The Monetary Authority of Singapore and Bank Indonesia signed a memorandum of understanding that increases cross-border cooperation and collaboration between the regulators in various matters.

Representatives of the EU and Indonesia participated in the 6th Security Policy Dialogue, focusing on combating emerging security issues.

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Enforcement Actions

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Important Facts

  • The U.S. State Department labels Indonesia as a major money laundering country. Indonesia remains vulnerable to money laundering and terrorist financing due to gaps in financial system legislation and regulation, a cash-based economy, weak rule of law, and partially ineffective law enforcement institutions. Most money laundering in Indonesia is connected to corruption and taxation cases, followed by drug trafficking, illegal logging, wildlife trafficking, theft, bank fraud, credit card fraud, embezzlement, and the sale of counterfeit goods. Indonesia is vulnerable to the smuggling of illicit goods and bulk cash, which is made easier by thousands of miles of poorly controlled coastlines, lax law enforcement, and poor customs infrastructure. Proceeds from illicit activities are also easily laundered offshore and repatriated as needed for commercial and personal use. Indonesia is making progress to counter its vulnerabilities, but endemic corruption remains a significant concern and poses a challenge. The country has bolstered cooperation regionally to disrupt terrorist networks, and related financial flows are shifting toward greater use of informal channels. Know-your-customer requirements have been part of Indonesia’s anti-money laundering regime since 2001, and politically exposed persons are subject to enhanced due diligence in the country. From January 2020 through June 2020, Indonesia achieved eight convictions for money laundering. During this same time period, the country's financial intelligence unit referred 240 analysis documents derived from suspicious transaction reports to investigators, the majority of which were alleged corruption cases.
-Source: 2021 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 4 High :
Largely Compliant : 8 Substantial :
Partially Compliant : 22 Moderate :
Non-Compliant : 14 Low :
Not-Applicable : 1

BASEL i

Rank : 35/110
Score : 4.68/10

TRANSPARENCY INTERNATIONAL i

Rank : 102/179
Score : 37/100

Tax Justice Network i

Rank : 79/133
Score : 51/100