Indonesian Financial Transaction Reports and Analysis Center (INTRAC) Jl. Indonesia Money Laundering Risk Assessment iii, 2015. LCRIME OFBJ = Other Provider of Goods and Services Transaction Report ML = Crime of Money Laundering. We praise Almighty God for his blessings and guidance so that PPATK together with the AML-CFT regime stakeholder included in the NRA Indonesia Inter-Agency Working Group can complete the preparation of the document “Indonesia Money Laundering Risk Assessment/Money Laundering NRA 2015” .
EXECUTIVE SUMMARY
Banking industry, capital market, real estate company/agents and motor vehicle dealers are most at risk of being used as a means by ML offenders in Indonesia. Business entity/Corporate service users, especially foundations, and non-small and medium scale corporations are at greater risk of becoming ML offenders than individual service users. However, some individual customer profiles also have a high risk of becoming a ML preparer, such as: Entrepreneurs, private employees.
CHAPTER
1 Introduction
BACKGROUND
The risk identification and assessment process for the Criminal Law on Money Laundering and Terrorist Financing is contained in the activities called National Risk Assessment. 1 FATF, the Government of Indonesia has a very strong commitment to efforts to prevent and eradicate the criminal law of money laundering. From mid-2013 to quarter III of 2015, Group NRA Indonesia has conducted Indonesia's risk assessment in relation to the Criminal Law on Money Laundering and risk assessment of Indonesia in relation to the Criminal Law on Terrorist Financing separately in the form of national risk assessment activities.
OBJECTIVE
Analysis and mapping of the risk levels for ML according to the alleged predicate crimes as measured by the trend level and the consequence level. Analysis and mapping of the risk levels of providers of financial services, providers of goods and other services, professional institution used as a means of conducting a ML based on the level of the trend and the level of consequence. Evaluation of the risk levels for ML according to the crime of origin and according to the reporting party within the framework of the preparation of the risk management recommendation for ML.
2 Literature Study
- SCOPE OF ML CRIMINALIZATION
- Passive ML (Article 5 Law of ML), more emphasizes on
- REPORTING PARTY IN AML REGIME
- SELF-REGULATING BODIES IN AML REGIME
- INDONESIA FINANCIAL TRANSACTION REPORTS AND ANALYSIS CENTER (INTRAC) AS FINANCIAL INTELLIGENCE
- LAW ENFORCEMENT AGENCIES OF ML
- COORDINATION OF PREVENTION AND ERADICATION OF MLOF ML
- NATIONAL RISK ASSESSMENT ON ML
- NRA Model version FATF
- NRA Model version World Bank
- Risk Assessment Formulation
Supervision is carried out in accordance with the instructions of the technical implementation of the supervision. The following describes the role of PPATK in the scheme of the anti-money laundering regime in Indonesia. The Law of ML currently in force stipulates that the investigation of the criminal Law of money laundering is carried out by the originating crime investigators.
The National Coordination Committee for the Prevention and Eradication of Money Laundering currently relies on Presidential Decree Number 6 of 2012. The consequences are the result or loss of the criminal act of money laundering and/or the financing of terrorism against institutions , economic and social in a broader sense, including the loss of criminal activity and terrorism itself.
3 Methodology
Based on the development of the literature review as well as the results of the Focus Group Discussion (FGD) with expert and related stakeholders, Indonesia NRA team compiled measurement methodology of Indonesia ML risk factors. To measure the threat level, the vulnerability level, the Probability level, the consequence level as well as the risk level, Indonesia NRA team used hierarchical method (multi-level). Ratio of number of STR to number of clients/clients at high risk of ML.
The percentage of follow-up after submitting the analysis result report and/or the study result report to ML researchers. Law Enforcement Official perception regarding the level of the average value of money laundering according to predicate crimes. A quantitative and qualitative analysis was conducted based on a variety of money laundering risk factors to measure the level of threat, vulnerability, likelihood and consequences caused. Moreover, based on the results of the money laundering risk analysis in Indonesia, an evaluation has also been carried out. done so that a wide range of recommendations can be compiled together with the implementation strategy.
4 Identification, Analysis, And Evaluation of Indonesia ML
Risk Factors
- ML Threat According To the Predicate Crimes
- The Threat According to the Type of ML Preparator Profile
For the threat of money laundering in the domestic environment, based on the results of the analysis of the degree of threat of money laundering in relation to the original criminal law, as shown in the table below and the table, the fact that there are 3 (three) previous criminal acts of money laundering that represent a threat of money laundering money rate at the "high" level, that is: corruption with the highest level of threat 9.0, followed by banking crimes 7.5 and narcotics crimes 7.3. Results of the analysis of the level of threat of predicate crimes of domestic money laundering according to the overall classification of the level of threat. The crime of corruption has not only the highest level of risk of money laundering, but also a trend of risk that is getting higher and higher.
As already explained, Indonesia as a developing country has a level of threat of money laundering from abroad which is quite high. Threat level of ML Indonesia coming from abroad by type of predicate crime. The chart below shows that the Enterprise Threat Level value of 7.01 is higher than the Individual Threat Level value of 6.74.
When analyzed in more detail to the threat level of corporation/entity clients, it is found that Foundations, Non-SMSEs Corporation as well as Joint Business Entity have the "high" threat level as ML offenders. The threat level of three profiles of corporation/entity services user has value above 7, namely each of 7.56 (Foundation), 7.41 (Non-MSMEs Corporation) and 7.02 (Joint Business Entity). Meanwhile, despite an average threat level of individual customers is lower than the corporate/agency customers, but some individual customer profiles have a "high" threat level than the ML offenders.
There are at least twelve (twelve) individual profiles with a 'high' threat level with a threat value higher than 7.
HITMAP OF ML RISK IN INDONESIA
- Hitmap of ML Indonesia according to the Predicate crimes
- Hitmap Indonesia Risk Assessment on Money Laundering Risk according to the region of the Occurrence of the Transaction
- Hitmap of Indonesia Risk Assessment on Money Laundering according to profil by customers
The crime of money laundering that occurs after the commission of a crime of corruption, such as related to the crime of gratuity, bribery and others. Transfer of property obtained through a crime of corruption in the name of the family (children, wife/husband, sister, brother and others) or in the name of any third party. The accused AM, as the former president of the Constitutional Court (MK), was ... sentenced to life imprisonment for the legally binding and convincingly proven criminal acts of corruption and money laundering.
In this case, AM was legally and convincingly proven in accepting a bribe of Rp1 billion through a balance transfer to a savings account in the name of CV. 6. Corruption in the handling of the dispute of regional election of Pulau Morotai Regency. In this case, AM was legally and convincingly proven by accepting a bribe of Rp3 billion through a balance transfer to a savings account in the name of CV. 7. Corruption in the handling of the disputed Elections Morotai. In this case, AM was declared legally and convincingly proven. AM takes bribes of Rp1.8 billion through the cash deposit to a savings account in the name of CV. 9. Corruption in handling the dispute of Regional Election of Banten Province.
Retention of money on the walls of the interior office with a total of Rp2.7 billion. Source: Adopted based on the judgment of the Court of the Criminal Law of Corruption at the Central Jakarta District Court. Sales that are reported in the Tax Year Report, the results are recorded in the account of the company while the sales that are not reported in the Tax Year Report are transferred to the shareholder/family.
The judgment of the appeal number: 2239 K/PID.SUS/2012 annulled the judgment of the Jakarta High Court No. It was also revealed in the judgment of the AAG's trial in late 2012. Regarding the company profile of the riskiest enterprises in ML include NPO/NGO, corporate and micro enterprises.
The use of the Bitcoin as a form of payment continues to develop, and merchants have an incentive to accept it due to the lower cost of the costs normally imposed by the credit card processor, namely 2-3%. The use of the Bitcoin by criminals has attracted attention from the financial regulator, legislature, law enforcement and the media. In Indonesia, the use of the Bitcoin in Indonesia that has developed as an alternative payment for transactions of properties, luxury vehicles, beverage facilities and accommodation.
Regarding the increasingly rampant use of Bitcoin in Indonesia, which has penetrated as an alternative payment for the transaction of property, luxury vehicles, illegal weapons, and even possible terrorism financing, the government is expected to pay more attention great not to further develop Bitcoin to be a money laundering tool, respecting that. However, until now, the Government of Indonesia has not yet decided explicitly about the use of Bitcoin. All risks associated with the ownership/use of Bitcoin are borne by the owner/user of Bitcoin and other virtual currencies.
In this regard, the Indonesian Payment System Association (ASPI) under BI will continue to keep an eye on the possible shift of the payment system from the conventional model to the new model. 05, 2013 · The exchange rates of Bitcoin compared to the official currency fluctuate a lot and potential owners have problems cashing Bitcoin. MAS will not interfere in the decisions of a business or company to accept or reject Bitcoin because it was a business decision.
24, 2013 · The creation, trading and use of virtual currencies, including Bitcoin, as a means of payment was not authorized by a bank or central authority.
PUBLIC
5 Conclusions NRA on ML
BIBLIOGRAPHY
