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BI, UAE central bank cooperate on cross-border payments, financial crime
Bank Indonesia and the Central Bank of the United Arab Emirates (CBUAE) recently signed a memorandum of understanding on financial technology, a cross-border payment system and measures against money laundering and terrorism financing.
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B
ank Indonesia (BI) and the Central Bank of the United Arab Emirates (CBUAE) recently signed an agreement on a payment system amid efforts between the two countries to foster stronger ties.
The memorandum of understanding (MoU) covers digital innovation in financial and payment services, a cross-border payment system including retail payments and a framework against money laundering and terrorism financing. It applies to both conventional and sharia finance.
BI and the CBUAE will engage in policy dialogue, information exchange and technical cooperation through working committees or other forms of partnership to implement the agreement.
“This [MoU] is also Bank Indonesia’s contribution to supporting the government’s efforts to become a member of the Financial Action Task Force [FATF] and realize the bank’s commitment to combating money laundering and terrorism financing, as well as following FATF recommendations,” BI spokesman Erwin Haryono was quoted in a press release as saying on Monday.
Indonesia is currently an observer to the FATF, along with 29 other countries and international organizations.
President Joko “Jokowi” Widodo and several ministers recently visited the UAE to foster stronger economic ties between the two countries.
The Investment Ministry reported on Saturday that Indonesia had secured US$44.6 billion worth of investment commitments from Emirati businesses and one United States company.
Currently, the UAE accounts for a small fraction of direct investment in Indonesia with just $5.8 million realized in the third quarter of 2021, data from the ministry shows. For exports, the Middle Eastern country accounted for less than 1 percent of September’s total goods exports, Statistics Indonesia (BPS) data shows.
Previously, Foreign Minister Retno LP Marsudi said 19 investment commitment deals involved cooperation between the Indonesian Investment Authority (INA) and Dubai-based multinational logistics company DP World.
State-owned oil giant Pertamina is also expected to ink a deal on floating solar panels with Abu Dhabi-based renewable energy company Masdar.
Abu Dhabi artificial intelligence company G42 is also expected to invest in smart city initiatives, telecommunications and genomics laboratories.
G42 visited Indonesia in September to meet its partners. Indonesia and the UAE also agreed to speed up talks on a comprehensive economic partnership agreement (CEPA).
After several rounds of negotiations that started in September, Jokowi expects the deal to be finalized as early as March next year.
