Presented by : Panji Achmad, SH, LL.M Group Head of Analysts. Dakar- Senegal

Transcription

1 Presented by : Panji Achmad, SH, LL.M Group Head of Analysts The Forum on Anti Terrorism and Its Financing December 2008 Dakar- Senegal 1

2 PRESENTATION OUTLINE Introduction Why focus on financing of terrorism? Legal basis of CFT: Indonesian Perspectives Indonesia s AML & CFT schema The role of FIU (PPATK) in CFT and the obstacles The role of Banks in CFT and the obstacles Financing of terrorism typologies Strategy for combating financing of terrorism 2

3 Population: 240 mio 87% moslems (200 mio) islands + 2 mio km x Singapore 3

4 BALI BOMBING I (2002) Victims: 202 killed (164 foreigners), 209 injured 4

5 JW MARRIOT BOMBING (2003) Victims: 12 killed, 150 injured 5

6 AUSTRALIAN EMBASSY BOMBING (2004) Victims: 11 killed, 140 injured 6

7 BALI BOMBING II (2005) Victims: 23 killed, 129 injured 7

8 BALI BOMBING II (2005) 8

9 3 Bombers of Bali Bombing I Final verdict: Death penalty executed by Firing Squad 09 Nov 08 9

10 How to approach and fight against Terrorism Financing? An Indonesian approach.. 10

11 New Approach Follow the money? Follow the suspect? 11

12 Follow the money approach 12

13 WHY FOLLOW THE MONEY TRAIL? Benefits: To identify the finances and financiers of crime and terrorism Following the money can lead to the most senior or powerful people in the terrorist organization To proactively detect terrorist and their actions and activities 13

14 WHAT FINANCIAL INFORMATION MAY TELL YOU Location of persons at certain times Relationship between related parties Involvement of related people Who controls the funds Identification documents, phone number, The assets held Travel undertaken by related person addresses 14

15 INDONESIAN FIU (INTRAC/PPATK) is an independent agency in implementing its duties and authority for preventing and eradicating the criminal offences of money laundering and CFT, responsible directly to the President of the Republic of Indonesia. 15

16 THE AUTHORITY of PPATK Request and receive report from Financial Service Provider (PJK) Request for information concerning the development of investigation /legal suit Auditing the PJK 16

17 II.1. Obligation to report to INTRAC 17

18 Who have to report? 18

19 Reporting Parties & Customs 19 19

20 How to report to INTRAC? 1. Manual reports 2. On line reports 20

21 manual & on-line $ STR& CTR STR& CTR FSP CBCC manual CBCC CUSTOMS 21

22 II.2. Type of Reports to PPATK 22

23 II.2. Type of Reports to PPATK Suspicious Transaction Reports (STRs) Cash Transaction Reports (CTRs) Cross Border Cash Carrying Reports (CBRs) 23

24 (STRs) Suspicious Financial Transactions shall be financial transactions: a.deviating from the profile, characteristics or the usual transaction patterns of the customer concerned; b.by customers that can be reasonably suspected to be conducted for the purpose of avoiding reporting of the transactions; or c.whether or not completed using assets that are reasonably suspected to constitute the proceeds of crime. 24

25 CASH TRANSACTION REPORTs (CTRs) Cash Financial Transactions shall be withdrawals, deposits or entrustments on a cash basis or using other monetary instruments, utilizing Providers of Financial Services, to a cumulative total of Rp.500,000, (five hundred million rupiah) or more or an equivalent amount in another Currency (approx.usd55,000), made either in one transaction or in several transactions within 1 (one) business day. 25

26 CROSS BORDER CASH CARRYING REPORTs (CBCCRs) Any person taking cash into or out of the territory of the Republic of Indonesia in the amount of Rp 100 million or more, or the equivalent in another currency (approx.usd10,000), must report to the Directorate General of Customs and Excise. The Directorate General of Customs and Excise must report the information received within 5 (five) days to the PPATK/INTRAC. 26

27 Data contained on Reports received 27

28 THE ROLE OF BANKS IN CFT To implement the KYC Principles To do building capacity (training) To oblige to report STRs and CTRs to the PPATK 28

29 THE OBSTACLES FACED BY BANKS The difficulties in detecting any financial transaction related to FT - Small amount of money - The transactions are in line with the customer profile With regard to FT, most of banks reports is based on the FIU (PPATK)/ the Police inquiry 29

30 ANALYSIS PROCESS CONDUCTED BY PPATK 30

31 A Process to Analyse STRs DATABASE FIU VISUAL LINK FSP TRACES ANALYSES INQUIRY FSP Regulator KPK YES FIU- LN NO PPNS AGO/POLICE COURT 31

32 32

33 ANALISYS TOOLS 33

34 Current Approach 34

35 THE PPATK S ANALYSIS REPORT RELATED TO TERRORISM As of 31 October 2008 Corruption 266 Fraud 201 Fraud Attempting 10 Banking Fraud 29 False Document 21 Terrorism 6 (1%) Tax Evasion 7 Gambling 5 Bribery 15 Narcotics 11 Child Pornography 1 Currency Counterfeiting 4 Theft 1 Illegal Logging 5 Smuggling 5 Can not be identified TOTAL:

36 THE PPATK S ANALYSIS REPORT RELATED TO TERRORISM 1% 0% 1% 0% 2% 2% 1% 1% 1% 3% 5% Corruption 1% 4% Fraud Fraud Attempting Banking Fraud False Document Terrorism Tax Evasion 43% 2% Gambling Bribery Narcotics Child Pornography Currency Counterf eiting 33% Thef t Illegal Logging Smuggling Can not be identif ied 36

37 CROSS BORDER CASH CARRYING (CBCC) REPORTs As of 30 Oktober 2008 Port *) 7 Total Report 2764 Batam 1490 Jakarta 1127 Bandung 1 Tanjung Balai Karimun 95 Denpasar 43 Dumai 1 Medan 7 *) Batam, Cengkareng Airport, Bandung Post Office, Tanjung Balai Karimun Harbor, Denpasar Airport, Dumai & Medan 37

38 Tracing Financial Transaction How to trace? - Depends on method of payments to be used; Need work together and coordination with PSO 38

39 INDONESIAN PAYMENT SYSTEM 39

40 Methods of Payments Depend on payment system used by reported party: Cash paper money & coins (-) Non Cash (IDR) Through ACH Through Funds Transfer System/RTGS Others Paper based (TC,) Card Based (KK, ATM, Debit Card, SVC) Transfer through other channel outside banking system (money remittances) Payment system operators (PSO) and members may report and provide information to INTRAC 40

41 Operators & Instruments Conducting cross check to reporting parties and others: Operators of Payment System in Indonesia - Funds Transfer Payment Instruments Operated by CB Operated by Bank Internal (intra bank)/ External (inter bank) Operated by Non Bank Money Remittance Non Bank Paper based Issued by bank TC, Issued by non Bank TC Card based Issued by bank (ATM, CC, DC, SVC, EM) Issued by non bank (CC, SVC, EM) E-Money/ SVC/Prepaid Card Bank & Non Bank Money Remittances Operated by Bank Operated by non bank (WU, MG) 41

42 CLEARING SYSTEM Bank A Data Cek/BG Bank D Bank B Data Transfer to Bank C Transfer to Bank C Transfer to Bank C Transfer ke Bank B Bank D Data Cek/BG Bank A Operator Transfer to Bank B Transfer to Bank D Cek/BG Bank A Bank C, Data Cek/BG Bank C Transfer to Bank A Transfer to Bank B Exchange of payment instruments issued by commercial banks Settlement will be conducted by central bank by debiting or crediting bank s account at the operator of clearing Data 42

43 EFT OPERATOR Sending Bank Data ST Bank sends a fund transfer instrument for benefit of a receiving bank through RT data Receiving B Data ST Receiving confirmation from RCC data Central System of RTGS RCC (Operator) Data. 43

44 Transfer through Remittances Sender advises Receiver of MoneyGram reference number Sender Send Agent Receiver MoneyGram System MoneyGram Transaction Centre Denver (Data ST) MoneyGram System Receive Agent 44

45 E-Money Scheme 45

46 New Approach to be more successful 46

47 FUNDING of TERRORIST GROUPS Sources of funding : Proceed of illegal activity : Kidnap for ransom, robbery, counterfeit goods, narcotics trafficking or front companies Barter/trading, eg. food for arms Proceeds derived from legitimate business activity set up by terrorist group Donations from charities/npo/ngo s 47

48 STRs RELATED TO CFT PPATK has received > 39 STRs from Financial Service Providers related to terrorism (as of 30 September 2008) 6 of result STRs related to terrorism financing has been transferred to Police HQ 48

49 Future Threats Various transactions: through non banking system (hawalah) through internet basis; by using paperless instruments; by using negotiable instruments: by using e-money. 49

50 THE OBSTACLES FACED BY PPATK - The using of cash transactions difficult to trace the flow of money; - Fake ID. 50

51 Conclusion The FIU has played an important role in the context of Combating Financing of Terrorism. 51

52 THANK YOU Merci Beaucoup TERIMA KASIH 52