Indonesia To Make Decisive Move Over Money Laundering

by Amanda Banks, Tax-News.com, London

05 December 2001

The Indonesian Home Affairs Minister, Hari Sabarno, has announced that the government intends to establish an anti-money laundering authority soon in an attempt to crack down on the rampant tax evasion, money laundering, and terrorist financing that takes place through the country's financial services sector.

Mr Hari explained that in addition to a relative lack of anti-money laundering laws, Indonesia has become a prime location for money launderers because of its advantageous location- sandwiched between Asia and Australia, and between the Pacific and Indian Oceans.

However, the Home Affairs Minister explained, all this will hopefully change with the introduction of new legislation and a regulatory body. The bill which will form the basis for the new commission is still under debate in the House of Representatives at the moment, but it is seen as an almost foregone conclusion that the House will approve the measures, and that they will pass into law early next year.

According to Hari Sabarno, and the Director General for Justice and Legislation Abdul Gani, who has also spoken on the subject, the Commission panel will be comprised of government officials, senior police officers, and finance experts, and will have the power to summon suspects before it, investigate them, trace suspicious banking transactions, and bring court cases.

Mr Abdul also revealed recently that in the course of an investigation, banking secrecy will not apply, and the money laundering commission will have the authority to trace suspect banking details, and to notify the Indonesian Central Bank.

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