IDN FIU issued Annual report 2023: enter the global arena - protecting Indonesia for two decades, which is its annual report for the year 2023; issued translation of same.
Report includes comprehensive outline of activities from 2023, and affirmation of IDN FIU's goal of protecting country from money laundering, terrorism financing (MLTF).
The report includes overview of national strategy of preventing and eradicating MLTF.
It also includes findings of financial service provider weaknesses, and 2024 audit plan.
Follows IDN FSA Mar. 2024 encouraged strengthening risk management, see #204848.
Financial Service Provider Weaknesses
Report covers financial service provider (FSP) weaknesses discovered in audit process.
Implementation of know your customer (KYC) is inadequate; policies are insufficient.
Implementation of the internal control system at non-bank FSPs is not yet operating optimally; implementation of AML/CFT training for non-bank FSPs is still limited.
Active supervision by board of directors and commissioners re the implementation of AML and CFT are still limited, and information systems require further refinement.
Plus, inadequate implementation of know your employee (KYE) in non-bank FSPs.
Implementation of internal control system at non-bank financial institutions not optimal.
Proposes 10 recommendations to supervisory and regulatory institutions including FSA.
2024 Audit Plan
In 2024, audit will be conducted jointly with supervisory institution and independently.
The focus of the audit will encompass three areas, firstly compliance with reporting obligations for cash transaction report (CTR) and suspicious transaction report (STR).
Including thematic supervision related to potential criminal activities within the forestry and environment sector (green financial crime), the flow of funds associated with a number of elections, online gambling, as well as terrorism financing.
Secondly, thematic analysis of recurring and repetitive patterns for reporting parties failing to report customer transactions pertaining to the same/similar cases/typologies.
Thirdly, 2024 compliance monitoring plan will be based on outcomes of the risk-based approach AML/CFT tools from LPP; specific inspection targets will be determined later.
Regulators
IDN FIU
Entity Types
B/D; Corp; Gambling; MSB
Reference
PR, Rp ISSN 2623-2766, 0005.26232766/JI.3.1/SK.ISSN/2018.09, Trsl 4/22/2024; ESG
