Indonesian President Warns of Crypto’s Money Laundering Risks

President of Indonesia Raises Concerns Over Cryptocurrency Use in Money Laundering

The President of Indonesia, Joko Widodo, recently addressed the alarming issue of money laundering through cryptocurrencies. During his speech at the 22nd Anniversary of the National Movement for Anti-Money Laundering and Terrorism Financing Prevention, President Widodo expressed his concerns about the increasing illicit financial flows facilitated by cryptocurrencies.

Indonesia’s Efforts in Anti-Money Laundering

Indonesia has taken significant steps to combat money laundering by joining the Financial Action Task Force (FATF), an international organization dedicated to fighting money laundering and terrorism financing. The country’s permanent membership in the FATF was approved by member states in Paris on October 25, following years of efforts since joining as an observer in 2018.

Importance of FATF Membership

President Widodo emphasized the importance of Indonesia’s full membership in the FATF, stating that it would enhance the country’s economic credibility and attract more investments. The support from 39 member countries will provide valuable expertise in combating money laundering, including crimes involving cryptocurrencies.

Enhancing Legal Frameworks

Sigid Suseno, a criminal law observer, highlighted the need for effective utilization of Indonesia’s FATF membership to combat money laundering. He stressed the importance of collaboration among law enforcement agencies to address evolving money laundering techniques, which are often linked to other criminal activities such as drug trafficking and terrorism.

Suseno also called for the implementation of the Asset Forfeiture Bill to strengthen the country’s ability to trace and seize assets derived from criminal activities, further enhancing efforts to combat money laundering.