Revealing Money Laundering Mode, PPATK: Ancient But Widespread Officials Hold ATMs Of Other Parties

Director of Analysis and Examination I Center for Financial Transaction Reports and Analysis (PPATK) Muhammad Novian (Wardhany Tsa Tsia/VOI)

JAKARTA - Director of Analysis and Examination I of the Financial Transaction Reports and Analysis Center (PPATK), Muhammad Novian, said there are three modes used by officials to launder money resulting from criminal acts of corruption. One that is still widely used is holding an ATM card or credit card in the name of another party.

This was conveyed in the Panel Discussion activity: Creating Synergy Between Law Enforcement Officials and Related Agencies. This event was carried out ahead of the commemoration of World Anti-Corruption Day (Hakordia) 2021 which will be commemorated on December 9.

"This is a bit old-fashioned but it's widely practiced where public officials or state administrators hold ATMs or credit cards belonging to other parties", said Novian as quoted from the Indonesian KPK's YouTube, Monday, December 6.

This ATM card or credit card, he continued, could even be made with a fake Identity Card (KTP). So, Novian said, the corrupt official could have multiple accounts to accommodate the money that was the result of presumptuous practices.

"Well, this (mode, red) is a challenge because the transaction does not appear to have an underline originating from the criminal act of corruption committed by the perpetrator", he said.

Furthermore, another motive that can be done is to take advantage of foreign exchange companies or money changers. This method, said Novian, is often used when officials receive bribes from foreign parties.

He revealed that this method is usually carried out when a foreign party entrusts money to be given to certain officials in Indonesia. "So the employees of the foreign exchange company brought thousands of dollars through Batam. They were brought with cash to be transferred to other foreign currencies in Indonesia", explained Novian.

"Later, at the end of the transaction, the foreign exchange company will withdraw the cash and hand it over to the official concerned", he added.

Novian said this method is widely used because it is safe and has never been detected. "This is almost similar to hawala. In fact, it uses money changers and cash quotas as regulated in Bank Indonesia regulations which are misused", he said.

The last way is to use a shell company. Novian said this method was used in the bribery case for the procurement of Roll Royce aircraft engines.

For information, the case involved a number of high-ranking officials at PT Garuda Indonesia and the private sector. The corruption has been handled by the Corruption Eradication Commission (KPK).

"It uses shell companies and then uses the profession of lawyers and notaries to manipulate transactions and manipulate the law so that the money received to bribe officials in Indonesia appears to be from legitimate business activities", he said.

According to Novian, the money laundering method will certainly continue to be carried out by perpetrators of corruption. The goal is that the garta they get from this preposterous act is not detected by law enforcement officials.

"Efforts to prevent corruption crimes from being seen, assets resulting from corruption crimes are not visible, we are familiar with the crime of money laundering. So he did something bad, but pretended not to do anything bad by laundering money", said Novian.

"So, once the corruption is revealed, he will only do it, the term is to attach a body but the assets are hidden in various ways by using the closest people, they can use professional money lenders so that the assets are not seen in the formal order or to the APH", he concluded.