Indonesia finance: FATF removes Indonesia from blacklist
EIU ViewsWire. New York: Mar 29, 2005. pg. n/a
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Abstract (Document Summary)
Efforts to counter money laundering have been acknowledged by the OECD's Financial Action
Task Force (FATF), which removed Indonesia from a blacklist of Non-Co-operative Countries
and Territories (NCCTs) in February. The decision means that developed-country financial
institutions are no longer required to give special scrutiny to transactions with Indonesia.
Full Text (178 words)
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Indonesia finance: FATF removes Indonesia from blacklist
COUNTRY BRIEFING
FROM THE ECONOMIST INTELLIGENCE UNIT
Efforts to counter money laundering have been acknowledged by the OECD's Financial Action
Task Force (FATF), which removed Indonesia from a blacklist of Non-Co-operative Countries and
Territories (NCCTs) in February. The decision means that developed-country financial institutions
are no longer required to give special scrutiny to transactions with Indonesia. Indonesian firms
should also enjoy reduced risk premiums as a result. Several countries relaxed their lending
provision requirements for Indonesia following the decision, according to Bank Indonesia (the
central bank), including Hong Kong and the Netherlands. Removal from the NCCT blacklist follows
a series of reforms that began in 2003 with the adoption of anti-money-laundering legislation and
the establishment of a financial intelligence unit (PPATK). Although Indonesia is no longer on the
blacklist, the FATF will continue its monitoring to ensure that the government takes investigation
and prosecution of money-laundering cases seriously. No money-laundering cases have been
successfully prosecuted under the 2003 law, despite the high prevalence of corruption and
financial crime.
SOURCE: Country Report