Indonesia Pledges to Combat Money Laundering, Terrorist Financing as FATF 40th Member

TEMPO.CO, Jakarta - Indonesia officially became the 40th member of the Financial Action Task Force on Money Laundering and Terrorist Financing (FATF) during its Plenary Meeting in Paris on October 25, 2023. The Chairman of the Boards of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar stated that this is a commendable achievement for Indonesia.

"This achievement shows that the national financial services sector is comprehensively fulfilling an international standard on anti-money laundering, prevention of terrorism financing, and financing of weapons of mass destruction," he said in a press conference today on Monday, October 30, 2023.

Indonesia's permanent membership at FATF places it equal to other G20 countries, Mahendra said. This will improve the international community's trust in Indonesia's financial integrity. "This will have a positive impact on the national economy," he said.

Earlier, the Head of the Indonesian Financial Transaction Reports and Analysis Center (PPATK) Ivan Yustiavandana also stated that FATF opens the gateway for Indonesia to further its national interest on the international stage while heading to the Golden Indonesia 2040.

According to Ivan, Indonesia's membership in FATF will increase Indonesia's economic credibility and positive perception of Indonesia's financial system. Consequently, this will influence the rate of economic growth through investment, whether domestic or foreign investment.

"Investors' faith in the government will increase due to their belief that their investment in Indonesia is secure and low-risk toward money laundering and terrorism financing," he wrote in a statement on Saturday.

RIRI RAHAYU

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