Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK)Indonesian Financial Transaction Reports and Analysis

Centre (INTRAC)

Legal Basis of the NCCLegal Basis of the NCC

Article 29B Law Number 15 Year 2002 as amended by Law Number 25 Year 2003:

“For the purpose of effectively preventing and eradicating the crime of money laundering, the President may establish a National Coordination Committee based on a recommendation from the Head of INTRAC/PPATK.”

Decree of the President of the Republic of Indonesia No.1 of 2004 regarding National Coordinating Committee for the Prevention and Eradication of Money Laundering dated on 5 January 2004 (“Presidential Decree No. 1/2004”).

The NCC MembershipThe NCC Membership

Chairperson : Coordinating Minister for Political, Law and Security Affairs.

Deputy : Coordinating Minister for Economy Affairs.Secretary : Head of the INTRAC/PPATK.

Members:1. Minister of Foreign Affairs.2. Minister of Justice and Human Rights.3. Minister of Finance.4. Chief of the Indonesia National Police.5. Attorney General of the Republic of Indonesia.6. Head of the State Intelligence Agency.7. Governor of Bank Indonesia.

The departments/agencies involved and its membership composition is as follows:

The government officials represented at the NCC are the ministerial level officials.

Office of Coordinating Minister for Political, Law and Security Affairs is the lead agency of the NCC.

The Duties and Meeting of the NCCThe Duties and Meeting of the NCC

The duties of the NCC is stipulated in the Article 2 of PD 1/2004 which is as follows:

1. to coordinate measures to prevent and eradicate money laundering crimes;

2. to provide recommendations to the President regarding the direction of and policies on the prevention and eradication of money laundering crimes at the national level;

3. to evaluate the implementation of the measures to prevent and eradicate money laundering crimes;

4. to report progress in the prevention and eradication of money laundering crimes to the President.

Based on the PD No.1/2004, the NCCNCC shall undergo the meeting at at least once every year.least once every year.

The MechanismThe Mechanism

The coordination mechanism is divided into the following levels:

1. The NCC; 1. The NCC;

2. The Working Team; 2. The Working Team;

3. The Technical Team.3. The Technical Team.

The NCC is assisted by a Working Team and a Technical Team who consists of high-ranking officials from various relevant ministries or agencies.

The establishment of the Working Team is regulated under Article 4 (1) of PD 1/2004

The Working Team consists of the following:

Chairperson : Head of the INTRAC/PPATK. Deputy : Deputy of the Coordinating Minister for Political, Law, and Security

Affairs for National Security.

Members:1. Deputy of the Coordinating Minister for Economy Affairs for International Economic Cooperation.2. Director General of Multilateral, Politic, Social and Security, Ministry of Foreign Affairs.3. Director General of Legal Administration Affairs, Ministry of Justice and Human Rights.4. Director General of Immigration, Ministry of Justice and Human Rights.5. Director General of Customs and Excise, Ministry of Finance.6. Director General of Financial Institution, Ministry of Finance.7. Chairman of the Capital Market Supervisory Board, Ministry of Finance.8. Head of the Criminal Investigation Department, Indonesia National Police.9. Deputy Attorney General for General Crimes.10. Deputy Head of State Intelligence Agency for Security Affairs.11. Deputy Governor of Bank Indonesia for Banking Affairs.

The Working TeamThe Working Team

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The Meeting of the Working TeamThe Meeting of the Working Team

Based on Article 4 (2) of PD 1/2004, The NCC Working Team may invite or involve the representatives of Financial Services Providers, experts or other relevant parties in the Working Team discussions if deemed necessary.

Article 5 of the PD No.1/2004 stipulated that the NCC Working Working TeamTeam shall undergo the meeting at least twice every yearat least twice every year.

The establishment of the Technical Team is regulated under the Article 1 of the Coordinating Minister for Political, Law and Security Affairs Decree No. KEP-38/MENKO/POLHUKAM/3/2007 regarding the Establishment of Technical Team of the National Coordinating Committee for the Prevention and Eradication of Money Laundering.

The Technical TeamThe Technical Team

The Technical Team consists of the following:

Chairperson : Deputy Head of INTRAC/PPATK for Laws and Compliance. Deputy : Director of Inter-Agency Cooperation of INTRAC/PPATK.

Member:1. Director II/Special Economic Crime of the Criminal Investigation Department, Indonesia National Police.2. Head of the Trans-National Crime Task Force, Attorney-General’s Office3. Director of Criminal Affairs, Directorate General of Legal Administration Affairs Ministry of Justice and Human Rights.4. Director of Legislations Drafting, Directorate General of Legislations Affairs, Ministry of Justice and Human Rights.5. Director of Immigration Intelligence, Directorate General of Immigration, Ministry of Justice and Human Rights.

Member (contd)

6. Head of Laws and Regulation Bureau, Capital Market and Financial Institution Supervisory Board, Ministry of Finance.7. Director of Examination and Investigation, Directorate General of Customs and Excise, Ministry of Finance.8. Director of Tax Audit and Collection, Directorate General of Tax, Ministry of Finance.9. Director of International Security and Disarmament, Directorate General of Multilateral, Ministry of Foreign Affairs.10. Banking Researcher, Directorate of Banking Research and Regulation, Bank Indonesia.11. Director of 32, State Intelligence Agency.12. Director of Laws and Regulation, INTRAC/PPATK13. Director of Research and Analysis, INTRAC/PPATK14. Director of Compliance, INTRAC/PPATK15. Director of Operating System and Application System Development, INTRAC/ PPATK16. Director of General Affairs, INTRAC/PPATK

The Technical TeamThe Technical Team

17. Head of Sub-division of Governmental Institution Policy Harmonization, Ministry of Home Affairs.18. Head of Sub-division of Eradicating of Trans National Crime, Directorate General of Multilateral, Ministry of Foreign Affairs.19. Head of Sub-division of Intelligence Cooperation, Directorate General of Immigration, Ministry of Justice and Human Rights.20. Investigators of Directorate of Special Economic Crime, Criminal Investigation Department, Indonesia National Police.21. Head of Sub-division of Cooperation and Supporting for Investigation, Directorate General of Tax, Ministry of Finance.22. Head of Sub-division 32.3, State Intelligence Agency.23. Senior Researcher on the Directorate of Banking Research and Regulation, Bank Indonesia.24. Head of Task Force Secretariat of the Eradicating of Trans National Crime, Attorney-General’s Office.25. Section Head of Enforcement II, Directorate General of Customs and Excise, Ministry of Finance.

Member (contd)

The Technical TeamThe Technical Team

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The Meeting of the Technical TeamThe Meeting of the Technical Team

For the NCC Technical TeamTechnical Team shall undergo the meeting at at least four times every year.least four times every year.

The NCC Technical Team may also invite or involve the representatives of Provider Financial Services, experts or other relevant parties in the Technical Team discussions if deemed necessary.

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As of Jan 2004 – May 2009

Meeting Period of the NCC, Working Team & Meeting Period of the NCC, Working Team & Technical TeamTechnical Team

No.The

Committee

Year

2004 2005 2006 2007 2008 2009

1. NCCNCC - 13 Jan 25 Jan 07 Feb 16 May 25 Mar

2. WorkingWorking

TeamTeam30 Nov 19 Apr 17 Jan

31 Jan

23 Oct

09 May

23 May

4 Dec

24 Feb

3. TechnicalTechnical

TeamTeam- - -

09 Apr

15 May

18 Dec

27-28

May

18 Jun

03 Dec

21 Apr

30 Apr-

01 May

Total:Total: 11 22 22 66 77 44

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The instruments referred to by the NCC to conduct its duties are as follows:

Significant Success of the NCCSignificant Success of the NCC

a. Removing Indonesia from Non-Cooperative Countries Territories List

- Setting up Comprehensive Implementation Plan requested by FATF as a requirement to be excluded from NCCTs’ list.

- Presenting highly commitment from Government of Republic of Indonesia to FATF.

- Preparing FATF On-site visit on January 2005.

- Implementing monitoring procedure after delisting from NCCTs during February 2005 – February 2006.

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c. The APG Mutual Evaluation Reports on Indonesia (MER)

Significant Success of the NCCSignificant Success of the NCC

b. APG Mutual Evaluation

Conducting preparation of Mutual Evaluation of Indonesia on 2007, including the completion of comprehensive ME Questionnaires and supporting documents, the preparation of ME On-site, and the finalization of MER.

- The progress on the implementation of MER is frequently discussed in the NCC meetings.

- Currently, the NCC is finalizing on action plans based on the Strategic Implementation Planning [SIP] framework to assist Indonesia to implement the recommendations set out in the MER.

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d. Issuing the Indonesian National Strategy on the Prevention and Eradication of the

Crime of Money Laundering in Indonesia fiscal year 2007-2011 (hereinafter referred to as “the National Strategythe National Strategy”) which includes the following:

- Strategy 1 : The Assignment of a Single Identity Number. - Strategy 2 : The Completion of Deliberation on AML Draft Law, Implementation

Regulations and the Enforcement. - Strategy 3 : The Management of Electronic Database and the Connectivity of

Related Inter-Agency Database. - Strategy 4 : The Improvement of the Compliance Oversight of Financial Services Provider. - Strategy 5 : The Implementation of Effective Asset Forfeiture and Asset Recovery. - Strategy 6 : Increased Public Participation Through a Public Campaign. - Strategy 7 : Improvement of International Cooperation. - Strategy 8 : The Strengthening of Regulations on Alternative Remittance System and Wire Transfer.

The Progress of the NCCThe Progress of the NCC

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e. The Donors’ Coordination Meeting

The results of each of Donors’ Coordination Meeting will be reported to the NCC to obtain approval.

- PPATK has managed to arrange Donors Coordination Meeting held twice every year in order to meet the PPATK’s and other related agencies’ needs with the donors’ expectation.

- The Co-Chairs of the meeting consist of the Head of INTRAC/PPATK representing recipients and one co-chair representing the donor and providers (so far representative from AusAID/Australian Embassy).

- The Donors Coordination Meeting involves Indonesian related agencies. i.e. National Development and Planning Agency, Bank Indonesia (the central bank), Capital Market and Financial Institution Supervisory Board, Indonesia National Police, Attorney-General’s Office, and the Ministry of Foreign Affairs, as well as the donors, i.e. USAID, AusAID, TAMF, MCC, World Bank, UKCC, British Embassy, IMF, French Embassy, and APG Secretariat.

The Progress of the NCCThe Progress of the NCC

Current Outcome of NCC 2009Current Outcome of NCC 2009

• On 25 March, Decided to expand the duty of NCC in handling on Countering Financing of Terrorism coordination in domestically. This decision was concerned that the policymakers of handling counter of terrorist financing were under the same government institutions which were also handling the money laundering crime policy.

• The appointment of Indonesian Financial Intelligence Unit (PPATK/ INTRAC) to be a focal point as the center of countering financing of terrorism, as previously in preventing and countering money laundering crime in Indonesia.

• The Approval to affix one single strategy on handling and supervising Non-Profit Organization (NPO) sector comprehensively to be the ninth strategy into “National “National Strategy on Preventing and Countering Money Laundering Crime and Strategy on Preventing and Countering Money Laundering Crime and Terrorist Financing fiscal year 2007-2011.” Terrorist Financing fiscal year 2007-2011.”

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INTERNATIONAL COOPERATION

1. Mutual Legal Assistance

2. Supervisory Channel

3. FIU1. Egmont

2. Mou

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MOU’s

PPATK signed MOU’s with:

1. FIU Thailand (AMLO)2. FIU Malaysia (UPW-BNM)3. FIU Korea Selatan (KoFIU)4. FIU Australia (AUSTRAC)5. FIU Filipina (AMLC)6. FIU Rumania (NOPCML)7. FIU Italia (UIC)8. FIU Belgia (CTIF-CFI)9. FIU Spanyol (SEPBLAC)10. FIU Polandia (GIFI)11. FIU Peru (UIF)12. FIU China (CAMLMAC)13. FIU Mexico (MFIU)

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MOU’s

• 14. FIU Kanada (FinTRAC)• 15. FIU Myanmar (CCB)• 16. FIU Afrika Selatan (FIC)• 17. FIU Cayman Island (CAYFIN)• 18. FIU Jepang (JaFIO)• 19. FIU Bermuda(BFIU)• 20. FIU Mauritius (MFIU)• 21. FIU Selandia Baru (NZ Police-FIU)• 22. FIU Turki (MASAK)• 23. FIU Finlandia (MLCH)• 24. FIU Giorgia (FMS Giorgia) • 25. FIU Croatia (Croatian AMLO)• 26. FIU Moldova (Center for Combating Crime & • Corruption of the Republic of Moldova)• 27. FIU Amerika Serikat (FinCEN)• 28. FIU Brunei Darussalam (FI-MOF)• 29. FIU Bangladesh (AML Unit-Bangladesh Central Bank)• 30. FIU Senegal (CENTIF)

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INTERNATIONAL COOPERATION

Become the member of the Egmont Group in June 2004

Become the member of Asia Pacific Group on ML in 2000

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Information Exchange1.Still No Information Exchange

regarding supervisory matters (LC) – MER- foreign subsidiaries - different focus on other countries

2.Inquiry regarding individual person

Outgoing-Incoming Exchange:a. Triggered by PPATK’s needs/initiative (spontaneous)b. Based on other institution’s request

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No. Type of exchange

Year

TOTAL

2003 2004 2005 2006 2007

Dec-08

1Outgoing Mutual Request (Incoming Information) 8 14 29 26 42 16 135

2Incoming Mutual Request (Outgoing Information) 0 17 22 16 22 32 109

3 Spontaneous Incoming Information 0 0 4 2 2 5 13

4 Spontaneous Outgoing Information 0 2 0 1 1 0 4

  TOTAL 8 33 55 45 67 53 261

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Information Exchange

AML Law :

1. Triggered by PPATK’s initiative, submitted to :

• LEA

• Regulator/Supervisor

• Other government institution related to AML/CFT and other PC

• Other FIU’s

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2. Based on Other’s request, requires :

• Related to Money Laundering cases

• Approved by the Head of PPATK

Information Exchange

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• With other FIU’s based on MOU’s or reciprocity

• Based on The Egmont Group norms or based on MOU’s (top secret information, not to be used in court)

• In formal written or electronically• In case of incoming request not from

FIU’s, done thru FIU’s or the country’s formal representatives.

Information Exchange

Thank youTerima Kasih

Jl. Ir. H. Juanda No. 35 Jakarta 10120Indonesia

Tel: +6221-3850455; +6221-3853922Fax: +6221-3856809; +6221-3856826

E-mail: Contact-us@ppatk.go.idwww.ppatk.go.id