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B20 Task Force focuses on countering money laundering
Money laundering is the process of concealing money made from illegal activities. According to a study done by the United Nations Office on Drugs and Crime (UNODC), criminal proceeds amount to 3.6 percent of global GDP, with 2.7 percent, US$ 1.6 trillion, being laundered in the year 2009.
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M
oney laundering is the process of concealing money made from illegal activities. According to a study done by the United Nations Office on Drugs and Crime (UNODC), criminal proceeds amount to 3.6 percent of global GDP, with 2.7 percent, US$ 1.6 trillion, being laundered in the year 2009. Other than the financial impact, money laundering can fund other serious crimes such as modern slavery, drug trafficking, corruption, and terrorism.
The Business 20 (B20) Integrity and Compliance Task Force has focused its agenda on stopping this illegal activity. The group will hold a conference on September 28 to put the spotlight on one of its policy recommendations to combat money laundering and terrorism financing.
As the president of G20 and as a country with a GDP of more than US$1 trillion, Indonesia needs to implement effective anti-laundering (AML) efforts to counter money-laundering activities. This is made more difficult with the ever-growing and increasingly complex business, information and technology environments.
The country has established the Indonesian Financial Transaction Reports and Analysis Centre (PPATK), an independent financial intelligence unit, to fight financial crimes, such as money laundering. The PPATK currently receives almost 50,000 financial transactions to analyze every hour.
Chair of the B20 Task Force, Haryanto T. Budiman, explained that member countries would prioritize three aspects moving forward; corruption, corporate governance, and digital crimes. The PPATK stated that it supported the B20’s strategic efforts to combat various economic risks, especially essential as Indonesia is in the process of becoming a full member of the Financial Action Task Force (FATF) on money laundering.
“The ICAEW believes that Indonesia’s G20/B20 opportunity in 2022 is an ideal time for governments to agree on tangible actions against economic crimes and those who launder their proceeds. With countries recovering from the pandemic facing economic challenges and new technology presenting opportunities for criminal activities, it is important that governments and the private sector work hand in hand to put in place strong countermeasures against economic crimes,” said Elaine Hong, the Institute of Chartered Accountants in England and Wales (ICAEW) director for China and South East Asia.
The ICAEW is a member of the B20 Integrity and Compliance Task Force. Elaine added that it was ready to provide guidance, resources, and supervision to Indonesia to fully support its AML campaign, as it has done so in the past for various countries. For instance, in the United Kingdom, the UK ICAEW participates actively in public-private forums such as the Economic Crime Strategic Board, the Joint Fraud Task Force, the AML Supervisors Forum, and the Accountancy AML Supervisors Group (AASG).
The ICAEW will also attend the conference on September 28 as a part of the B20 task force. The event will be held to discuss countermeasures against money laundering and terrorism financing. It will bring together experts from the ICAEW, His Majesty’s Revenue and Customs (HMRC), Indonesia Banking Compliance Director Communication Forum, EY Indonesia, and the PPATK.
In order to spread more awareness about money laundering and other financial crimes, the ICAEW has produced a training film entitled All Too Familiar. The film was prepared in collaboration with the HMRC to challenge mindsets and provoke discussion on the need for greater professional skepticism to identify the risks of economic crimes. The movie will have its first international film screening at the first session of the B20 hybrid event. ICAEW experts will then continue the second session with case studies and insights on financial crimes.
“As a member of the B20 Integrity and Compliance Task Force, the ICAEW supports the task force’s recommendations to mitigate money laundering practices and strengthen corporate governance in Indonesia. We hope that through this conference, all participants can help our mission to raise public awareness of the importance of customer due diligence and public education about the risks of economic crimes, which everyone can help combat,” concluded Conny Siahaan, Indonesia's head of the ICAEW.
The B20 Integrity and Compliance Task Force Conference: Fostering Agility to Combat Money Laundering and Economic Crimes will take place on Wednesday, Sept. 28, from 1.30 p.m. to 8.00 p.m. The event is open to the public. You can reserve your spot now via the link here.
