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New law to empower KPK, PPATK in graft fight
Legislators have passed into law a money laundering bill that grants new powers to the state’s money laundering agency and gives the antigraft commission the authority to probe illicit fund transfers linked to corruption
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egislators have passed into law a money laundering bill that grants new powers to the state’s money laundering agency and gives the antigraft commission the authority to probe illicit fund transfers linked to corruption.
The bill was passed at a House of Representatives plenary session chaired by House’s deputy speaker Pramono Anung, from the Indonesian Democratic Party of Struggle on Tuesday.
Harry Witjaksono, the head of the special committee tasked with deliberating the bill, said that the new law would grant the Corruption Eradication Commission (KPK) the authority to conduct its own investigation into suspected money laundering connected to graft.
Other institutions able to perform investigations, he said, were the National Police, the National Narcotics Agency, the Finance Ministry’s Taxation Directorate General, and Customs and Excise Directorate General.
In this country, money laundering is connected to various crimes, including drug trafficking, terrorism, illegal logging and corruption.
Under the previous law, only the police and the Attorney General’s Office were authorized to investigate suspected money laundering. Critics have lambasted the two institutions for lacking conviction in fighting corruption.
Harry added that KPK investigators could launch investigations if they had sufficient evidence as defined in the law.
The KPK will now receive copies of the financial intelligence reports issued by the Financial Transaction Reports and Analysis Centre (PPATK). Previously, the reports were only disclosed to the police and the AGO.
Harry added that the “state is obliged to grant special protection to each person who reports suspected money-laundering activities as stipulated by the law”.
Justice and Human Rights Minister Patrialis Akbar, on behalf of President Susilo Bambang Yudhoyono, stated that the President agreed with the passing of the money laundering bill into law.
He further said that the new law would broaden the PPATK’s authority. “The PPATK will examine suspicious financial transactions that indicate money laundering crimes or other criminal activities,” he added.
“The PPATK can order financial service providers to temporarily halt all or parts of a transaction.”
The previous law limited the PPATK’s mandate to collecting, analyzing and disclosing financial intelligence in suspected money-laundering cases.
Patrialis added that financial service providers must report to the PPATK any transfer of funds into and out of Indonesia, or international fund transfer instructions, as an addition to previous obligations to report suspicious fund transfers and cash transactions.
He said that the providers of goods and services “are obliged to report to the PPATK transactions with a minimum value of or equal to Rp 500 million [US$56,000] undertaken by the service’s user”.
The PPATK currently monitors transactions exceeding Rp 500 million, which they can deem suspicious if the value digresses from the profile, characteristics or common transactions pattern of a bank account owner, or is funded by criminal acts.
PPATK spokesperson Natsir Kongah told The Jakarta Post that passing the bill was the “optimal result that can be attained by the government and the House” and that it would increase the “effectiveness and efficiency” of the anti-money laundering law.
He said the PPATK would implement the law “as soon as possible” after holding discussions on necessary changes that the PPATK must undertake in response to this new law. “We are studying the law again,” he said. (gzl)
