Indonesia Becomes Official Observer of Financial Action Task Force

Indonesia was assigned as an official observer of the Financial Action Task Force – Middle East and North Africa Financial Action Task Force (FATF - MENAFATF) on 29 June 2018. Indonesia is being represented by the Ministry of Finance, the Ministry of Foreign Affairs and the Indonesian Financial Transaction Reports and Analysis Center (PPATK).

The appointment of Indonesia as an FATF observer is of considerable significance, given that the FATF is an inter-state cooperation forum which is aiming to establish global anti-money laundering and anti-terrorism financing standards, as well as standards relating to other matters that threaten the international financial system. As one of the world’s major economic powers and a member of the G-20, Indonesia should be participating in strategic policy-making processes which will ultimately go on to define the international financial system.

Following the appointment, Indonesia will undergo the FATF Mutual Evaluation Review (MER) process in order to assess Indonesia’s compliance as regards the anti-money laundering and anti-terrorism financing regimes, as a further step towards becoming a full member of the FATF. However, in its current role of observer, Indonesia is already able to participate in FATF activities and to offer direct input during official FATF meetings.