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All cross-border transactions must be reported
The Financial Transaction Reports and Analysis Centre (PPATK) has announced that starting on Jan
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he Financial Transaction Reports and Analysis Centre(PPATK) has announced that starting on Jan. 1, 2014, all financial transactionsinto and out of the country would have to be reported to the center.
The new rule, which will be applied following the adoption of the international funds transfer instructions (IFTI), aims to counter money-laundering practices. PPATK deputy chairman Agus Santoso stressed that all financial transactions, regardless of their amount, had to be reported. 'Even a Rp 1 [transaction] must be reported. So far, we have seen cases of money from illicit practices being sent overseas,' Agus said at a seminar on money laundering in Bandung on Tuesday.
According to Agus, the adoption of the rule is also part of the country's preparation for the ASEAN Economic Community (AEC) in 2015, which will usher in far greater movements of both money and people.
Currently, the PPATK is working with six banks and several money-transfer providers in preparation for the rule's implementation on Jan. 1.
Agus added that all banking representatives had been informed about the new requirement at a national meeting held recently with banking compliance directors.
