Indonesia Aims For FATF Membership, KSP Forms Task Force On Prevention Of Corporate Abuse For Economic Crimes

Deputy III KSP Role model Sulendrakusuma. (Photo: Doc. Antara/KSP)

JAKARTA - The Presidential Staff Office has established a Sectoral Risk Assessment (SRA) Task Force, which is tasked with preventing corporate abuse for economic crimes. Through this step, KSP encourages the acceleration of Indonesia becoming a member of the Financial Action Task Force (FATF).

"To become a member of the FATF, Indonesia must have strong national financial integrity. For that, it needs a risk assessment team at the sectoral level so that corporations are not misused for economic crimes," said Deputy III KSP Panutan Sulendrakusuma in a press release quoted by Antara, Sunday 12 June.

FATF is an institution that makes international standards in the form of law-level regulations related to money laundering, terrorism financing, and other economic crimes.

The role model emphasized that FATF membership is the direction of the President of the Republic of Indonesia Joko Widodo considering that Indonesia is the only G20 country that has not yet become a member of the FATF, and is currently only an observer.

He mentioned a number of benefits if Indonesia had become a member of the FATF, including being able to be more accepted in the international business world, cooperation in combating money laundering mechanisms, as well as terrorism financing and being able to participate in setting global standards in the context of developing countries.

According to him, risk assessment at the corporate sectoral level or corporate sectoral risk assessment (SRA) can be a guide for regulators in carrying out risk-based supervision (RBS), and guidelines for law enforcement officers to handle risk-based economic crimes. (RBI).

This, he said, could also apply to the financial industry of banks and non-banks as well as other reporting parties in early detection of money laundering crimes (TPPU), terrorism financing crimes (TPPT), and other economic crimes.

Based on field verification related to risk assessment at the national level / National Risk Assessment (NRA) 2021, said Panutan, there are still obstacles to getting to FATF membership, one of which is the absence of a risk assessment at the sectoral level / sectoral risk assessment (SRA) related to corporation.

On that basis, the Presidential Staff Office initiated the establishment of a corporate SRA Task Force with related ministries/agencies.

"All Ministries/Agencies agree to achieve strong national financial integrity and Indonesia's membership in the FATF. The task force for accelerating the preparation of the corporate SRA is trilaterally commanded by the Ministry of Law and Human Rights, PPATK, and OJK and intensively supervised by KSP," said Panutan.

For information, to become a member of the FATF, Indonesia must pass the mutual evaluation review (MER) assessment by the FATF assessor team in July 2022.

Indonesia's success in the FATF MER requires increasing Indonesia's compliance with the FATF Recommendations covering various areas of the Anti-Money Laundering and Prevention of Terrorism Financing (APU PPT) program, including the development of new technologies.