PPATK 'Spotters' Suspicious Transactions In Virtual Spaces: NFT New Challenges In Combating Money Laundering

Head of the Financial Transaction Reports and Analysis Center (PPATK) Ivan Yustiavandana (left) attends a working meeting with Commission III DPR/ANTARA FOTO/Galih Pradipta/rwa.

JAKARTA - Head of the Center for Financial Transaction Reports and Analysis (PPATK) Ivan Yustiavandana said his institution is increasing the supervision and prevention of various suspicious flows of funds in Indonesia, especially in virtual spaces.

"PPATK seeks to improve supervision and prevention of various (suspicious) flows of funds in Indonesia, including financial transactions in virtual spaces," said Ivan in the DPR Commission III Working Meeting (Raker), quoted by Antara, Monday, January 31.

He explained that the use of technology such as "virtual currency", "blockchain/distributed ledger technology" or DLT, peer to peer lending, non-fungible tokens (NFT) has presented new challenges in efforts to prevent and eradicate money laundering.

According to him, PPATK will oversee joint compliance and joint audits of potential crypto asset physical traders, as a response to mitigating emerging risks and threats such as physical funding of crypto assets.

He explained that in the risk assessment of the Money Laundering Crime (TPPU) in 2021, there are several changes and new threat conditions to aspects of prevention and eradication of money laundering offenses, terrorism financing crimes, and funding of weapons of mass destruction.

According to him, corruption and narcotics are high-risk types of money laundering offences.

"In addition, the trend of financing terrorism has also undergone many changes. From initially using illegal sources such as robbery, criminalization or violence, turning into fundraising through fundraising scenarios with the label of humanitarian donations or legitimate businesses," he said.

In addition, in the Working Meeting, Ivan explained that during 2021, INTRAC has received around 73,000 suspicious financial transaction reports, transaction reports from and to foreign countries amounting to 19.7 million reports.

He said there were 2.4 million cash financial transaction reports, and 39 thousand transaction reports for goods and services providers. According to him, PPATK also submitted 1,104 reports on the results of the analysis, including supporting the feasibility test program and selection of high leadership positions.