19 Apr 2018
Indonesia’s government has proposed a law to parliament to limit cash transactions to curb bribery and money laundering in Southeast Asia’s biggest economy, the head of the country’s anti-money laundering watchdog said on Wednesday.
The draft bill, which limits any cash payments to a maximum 100 million rupiah (£5,113), will be assigned as a legislative priority for 2018, said Ki Agus Badaruddin, head of the Financial Transaction Reports and Analysis Centre (PPATK), adding that he hoped the bill can be approved later this year.
“Basically, the assumption is this restriction will reduce the space in which one can commit acts of money laundering and terrorism financing,” said Badaruddin.
No details were given on how such a law could be enforced.
Some 85 percent of transactions in Indonesia are in cash and are harder to track that those done through banks or other electronic channels, making it a challenge for the government to fight money laundering, corruption and terrorism financing.
Badaruddin was quoted by media as saying the PPATK had detected an increase in bribery with most transactions in cash.
PPATK had found more than a thousand suspicious cash transactions that could be related to the upcoming regional elections across Indonesia, versus 53 suspicious transactions done electronically, Tempo.co reported.
– By Maikel Jefriando, Reuters, 18 April 2018
Link to the Reuters story.
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