International scale of the Southeast Asia region (Southeast Asia Plus Australia and New Zealand). The emergence of the TF new threats (emerging threat) in the form of the use of cross-border payments online and carrying cash (cross-border cash movement/CBCM).
REGULATION AND LEGISLATION OF TERRORIST FINANCING PREVENTION
13/2018 CONCERNING THE APPLICATION OF THE PRINCIPLES FOR THE RECOGNITION OF CORPORATE REGULATIONS IN CONNECTION WITH THE PREVENTION AND ERADICATION OF MONEY LAUNDERING AND TERROR FINANCING CRIMES. 2/2017 ON IMPLEMENTATION GUIDELINES FOR THE IMMEDIATE BLOCKING OF FUNDS BELONGING TO PERSONS OR COMPANIES IDENTIFIED ON THE WMD PROLIFERATION FINANCING LIST.
MAIN RISK ON NRA TF 2015 UPDATED
MAIN RISK IN THE NATIONAL
AX received Rp.800,000 cash from the OG at the behest of BA who was a member of the terrorist group Mujahidin Indonesia Timur (MIT) for the purpose of purchasing BOM-making materials to explode in the Pantangolemba, Poso-Central Sulawesi become 6,000,000 and asked him to transfer the money using that account to the Green Bank account on behalf of AH amounting to Rp. 800,000 in June to the Green Bank account on behalf of DA amounting to Rp.
This is in the form of coordination of the terrorist groups, with the aim of maintaining and developing a wider terrorist network. In the 2015 NRA TF document, both individual and non-individual profiles have been identified as subjects for terrorist financing actors. Indeed, the high profile of traders/entrepreneurs/businessmen as perpetrators of terrorist financing has begun to be seen in the 2015 NRA.
Cash • The use of cash as a tool for terrorist financing appears to be widely used because money is practical, immediately usable and easily transferable, without any trace of ownership. Several recipients of funds in the Philippines were found to have ties to the families of members of the radical terrorist movement. The fact that the DKI Jakarta province is a risk area for terrorist financing is also evident from the total number of suspicious transactions related to terrorism in the report for the period 2015-2018.
EMERGING TF THREAT
The use of e-payment/electronic payment, or better known as online payment in connection with cross-border payments in some terrorist financing cases, is evidence that terrorist groups continue to look for alternative financing instruments that are fast, can reach abroad and most importantly everything has not attracted the authority of the parties so that the terrorist financing process can be carried out without detection. MK is a farmer who lives in Sumedang area, West Java and has been sentenced to 5 years in prison for being legally and convincingly proven guilty of committing the crime of terrorism and terrorist financing. However, with the strict supervision and monitoring in the banking industry and overseas remittances today, terrorist groups began to realize and try to find other alternatives so that terrorist financing transactions carried out by their groups are not easily tracked by the security authorities.
Moving money across borders using couriers has long been known in the case of narcotics transactions, where money is moved through formal channels under the guise of money changers, making statements to make everything look reasonable, or moving the money be under the threshold with different couriers. or transporting money by informal means with money smuggling by courier, the same thing started to appear in the case of financing terrorism. THREATS OF CARRYING CROSS-BORDER CASH FOR TERRORIST FINANCING MA as the brain of ISIS group financing in Southeast Asia 18. Malaysian militant MA is said to be a weapons expert and also a source of money to the terrorist group.
In Mindanao, the couriers will leave a bag of cash in the designated area, where other militants can then hand over the money to MA.
TERRORISM FINANCING MITIGATION SUCCESS TAKEN BY THE STAKEHOLDERS FOR THE
TF MITIGATION TAKEN BY THE STAKEHOLDERS FOR THE 2016–2018 PERIOD
The Agency for Combating Terrorism established the criteria for a radical location in the context of the fight against propaganda and radicalism with the Decree of the Head of the Agency for Combating Terrorism no. Anti-radicalization: implemented in the radicalized community in the form of promotion and loyalty of the united Republic of Indonesia. 1 Trials in cases of terrorism and terrorist financing were conducted separately, especially in the Jakarta Barat District Court and in coordination with the relevant ministries for a smooth trial.
Regulation of the Head of INTRAC Number 7/2017 on the application of the principle of recognition of service users for other goods and/or service providers. Regulation of Head of INTRAC Number 11/2017 on the application of the principle of recognition of service users for land deed-making officials. Regulation of Head of INTRAC Number 17/2017 on the application of the principle of recognition of service users for postal services.
RBI 19/10/PBI/2017 on Application of Anti-Money Laundering and Prevention of Financing of Terrorism to Non-Bank Payment System Service Providers and Non-Bank Foreign Exchange Providers.
MITIGATION TAKEN AGAINST THE LATEST METHODS OF TERRORISM FINANCING IN 2016-2018
Control of CEBA and unlicensed non-banking FTS, illegally coordinate with Indonesian Police and relevant K/L. Imposition of sanctions (administration and revocation of licenses) for CEBA and Non-Banking FTS that do not comply and violate the provisions;. Programmed capacity building for BI supervisors across Indonesia as well as non-bank FTS and non-bank CEBA through coordination meetings, seminars and training clinics;.
This RBI requires non-bank FTS to compile and implement rigorous AML and CTF programs, including the implementation of CDD/EDD and risk-based approach (RBA). BI has issued guidelines on the application of risk-based TF ML for supervisors and Non-Bank FTS (and Non-Bank CEBA). BI used risk-based tools for supervisors and organizers of non-bank FTS (and non-bank CEBA), including RBA upgrade tools.
Conduct capacity building program for FTS supervisors outside banks, promoters and the wider community to increase the skills of the public.
NPO RISK MANAGEMENT AGAINST TERRORIST FINANCING
CURRENT GOVERNMENT POLICIES TOWARDS INDONESIAN NPO
As one of the popular mediums for community aspirations, civil society organizations or better known as non-profit organizations (NPOs) are important elements in the life of the nation and the state around the world. The birth of community-based and community-led NGOs proved to be a vehicle for expressing community demands to government. 17/2013 regarding CSOs, but the Law puts more emphasis on the administrative provisions or the general governance of NGOs and still does not regulate the prevention of terrorist financing through NGOs.
9/2013 on the Prevention and Eradication of Terrorist Financing Crimes and Supreme Court Regulation (Perma) No. This presidential regulation clearly established that civil society organizations that receive and distribute funds must identify the sender and receiver of the funds so that the CSOs are not diverted funds for terrorist financing activities. The integration of the NPO database coordinated by the Ministry of the Interior is still being developed in accordance with Government Regulation no.
As a form of the government's commitment to create order, openness and easy access to NPO data in Indonesia for the public and stakeholders, the Ministry of Law and Human Rights, acting as an authorized institution for established an NGO legal entity in Indonesia by 2019, has provided access to the publication via the Internet https://ahu.go.id/pencarian/profil-yayasan for the data of Foundation-type NGOs and also https:/ /ahu.go.id/pencarian/profil-pernungan for Association-type NGOs.
NPO CONTROL
CONCLUSION AND RECOMMENDATION
CONCLUSION
A description of the latest regulations and legislation that has been produced by the Government of Indonesia in terms of preventing the financing of terrorism. In the phase of collecting funds in the form of: Donations to terrorist groups, self-financing, financing through social media. At the stage of transfer (movement) of funds in the form of: holding cash, using licensed non-banking fund transfer providers, using banking products and services.
Profile of high-risk perpetrators of recent terrorist financing in the form of traders, entrepreneurs/businessmen. Banking products in the form of savings accounts and transaction instruments in the form of the use of cash financial transactions were found to be at high risk for terrorist financing. Explanation of the success of the mitigation of terrorist financing for the period 2016-2018 in the form of a description of TF reduction measures in Indonesia, both mitigation per stakeholder and per mitigation method, which also shows the government's commitment to preventing and eradicating TF.
The results of this NRA risk assessment are expected to support stakeholders in Indonesia in carrying out tasks related to the prevention and eradication of the Terrorist Financing in Indonesia.
RECOMMENDATION
Explanation of Indonesia's NPO Risk Management Against Terrorism Financing, including a description of the government's latest policy on the Indonesian NPO, identification of TPPO risks at the ASEAN Plus regional level, NPO registration, NPO data collection and NPO publication , NPO control and NPO subset are at risk for domestic NPO supervision by a supervisory and regulatory body.
ANNEXES
- METHODOLOGY
- PESTEL ANALYSIS
- DATA SOURCES AND INFORMATION FOR THE UPDATED 2015 NRA
- OTHER REFERENCES
In the context of terrorist financing, a threat is a person and group of people associated with transactions aimed at financing terrorist acts. In the context of terrorist financing, vulnerabilities are things that become weaknesses in financial institutions that can be exploited by the threat of terrorist financing transactions. In the context of terrorist financing, an effect is a possible effect if a terrorist financing transaction takes place until a terrorist act occurs.
The formulation of the risk assessment in the 2015 NRA follows the IMF guidelines for The update of the NRA TF was carried out by analyzing and analyzing all the documents resulting from a national assessment of the financing of terrorism in Indonesia in the period 2015-2018. The recommendations and evaluation results in this NRA document are used as a reference by stakeholders in the preparation of the prevention and eradication of criminal acts of terrorist financing in Indonesia.
An important point raised in this paper is the existence of the FTF phenomenon and the change in the method of fundraising that has shifted from the use of NPOs to the use of social media.
