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Customs and Excise agency supports Indonesian membership in FATF
The Customs and Excise Directorate General is in full support of Indonesia joining the intergovernmental Financial Action Task Force (FATF) as a full-fledged member.
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T
he Customs and Excise Directorate General is in full support of Indonesia joining the intergovernmental Financial Action Task Force (FATF) as a full-fledged member. Despite its active participation since 2016, Indonesia is the only G20 country that has not obtained permanent FATF membership. However, Finance Minister Sri Mulyani Indrawati has made assessments of Indonesia’s preparations to obtain an FATF membership and has noted that the process may not be easy as it requires efforts from all related institutions and approval from the FATF members themselves.
The task force, formed at the 1989 Group of Seven summit in Paris, aims to set international anti-money laundering standards and combat the financing of terrorism and proliferation (AML/CFT). FATF recommendations ensure a coordinated global response to prevent organized crime, corruption and terrorism. According to subdirectorate head of public relations and customs counseling Hatta Wardhana, joining the FATF is a crucial step toward eradicating crimes related to money laundering and terrorism financing.
In addition to intercepting the entry of contraband, including illegal firearms and explosives, the Customs and Excise agency also seeks to prevent cross-border cash transportation — a strong indicator of terrorism funding.
“In support of the membership, the Customs and Excise agency has been conducting inspections around border areas to combat money laundering and other offenses. This is part of its role as a community protector to guard the public against the entry of illegal goods,” said Hatta.
From an economic perspective, an FATF membership will demonstrate the integrity and stability of Indonesia’s financial and trade system. On the industrial side, it will build confidence in the business and investment climate in Indonesia. The Customs and Excise agency believes it will increase Indonesia’s credibility from the perspective of its international trading partners.
“Therefore, we need strong commitment from every stakeholder and the public itself to support Indonesia’s initiation as an FATF member,” Hatta concluded.
Indonesia will need to pass an assessment by FATF assessors using forty recommendations and eleven immediate outcomes known as Mutual Evaluation Review (MER). This year, MER is entering the onsite visit phase, which takes place from Jul. 17 to Aug. 4 in Jakarta. To ensure all goes well, various institutions, including ministries, will take part in a cooperative effort to secure Indonesia’s membership in the FATF.
