to Indonesian
a. that crimes resulting in a sizable amount of wealth continue to increase, including those committed inside and outside the territory of the Republic of Indonesia;
b. that the sources of wealth resulting from the crimes are concealed through various ways known as money laundering;
c. that money laundering practices must be prevented and eradicated to minimalize the intensity of crimes resulting in or involving a sizable amount of wealth so that the national economic stability and state security can be maintained;
d. that money laundering is not only a national crime but also a transnational crime that must be eradicated by, among other things, establishing regional and international cooperation through bilateral and multilateral fora;
e. that based on the considerations in letters a, b, c and d, it is necessary to enact a law on money laundering crimes;
1. Article 5 paragraph (1) and Article 20 of the 1945 Constitution;
2. Resolution of the People's Consultative Assembly No. VIII/MPR/2001 on recommending the policy of eradicating and Preventing corruption, collusion and nepotism;
LAW ON MONEY LAUNDERING CRIMES
Hereinafter referred to as :
1. Anybody shall be either an individual or corporation.
2. Corporation shall be an organized group of people and/or wealth, either corporate body or non-corporate body.
3. Wealth shall be all movable or immovable, either tangible or intangible.
4. Financial service provider shall be any individual that provides services in the financial sector, including but not limited to bank, financing institute, stock company, mutual fund manager, custodian, trustee agent, custodian and clearing institute, money changer, pension fund, and insurance company.
5. Transaction shall be the whole activities that result in rights and obligations or legal relations between two parties or more, including the transfer of funds made by a financial service provider.
6. Dubious financial transaction shall be the transaction that deviates from the profile and characteristics as well as normal pattern of transaction of the customer concerned, including financial transaction allegedly made by a customer to avoid reporting the said transaction as required by this Law.
7. Documents shall be data, record, or information that can be seen, read, and/or heard, and can be released with or without the help of equipment, including that put on a piece of paper or other material than paper, or that recorded electronically, including but not limited to :
8. The Center for Reporting and Analyzing Financial Transactions, hereinafter abbreviated to PPATK, shall be an independent institute formed to prevent and eradicate money laundering crimes.
The result of criminal offences shall be wealth totaling Rp500,000,000 (five hundred million rupiahs) or more or an equivalent amount, gained directly or indirectly from :
committed inside or outside the territory of the Indonesia and categorized as criminal offences dance with the Indonesian law.
(1) Anybody that intentionally
(2) Anybody that tries, helps, or makes an evil deal to commit a money laundering crime shall be subject to the same penalty as that referred to in paragraph (1).
(1) In the event that a criminal offence is committed by the manager and/or the attorney of the manager in the name of a corporation, both the manager and/or the attorney and the corporation shall be subject to penalty.
(2) The criminal responsibility of the manager of a corporation shall be limited, provided that the manager has functional position in the organizational structure of the corporation.
(3) A corporation shall not be held responsible by virtue of the criminal code for a money laundering crime committed by the manager- in the name of the corporation, if the criminal offence committed through an activity outside the scope of businesses as referred to in the articles of association or other rules applicable to the corporation concerned.
(4) A judge can either order the manager of a corporation to appear in person during a court trial or order to bring the manager to a court trial.
(5) In the event that a criminal offence is committed by a corporation, a summons to appear in a court trial shall be served on the manager in the domicile or office of the manager.
(1) The principal penalty imposed on a corporation shall be fines, namely maximum fines plus 1/3 (one-third).
(2) In addition to the fines as referred to in paragraph (1), the corporation shall also be liable to extra pena!tv in the form of having its business permit revoked and/or disbanding the corporation followed by liquidation.
(1) Anybody that receives or controls:
of wealth known or supposed to be the result of a criminal offence shall be liable to a minimum of 5 (five) years' imprisonment and a maximum of 15 (fifteen) years' imprisonment plus a minimum fine of Rp5,000,000,000.00 (five billion rupiahs) and a maximum fine of Rp15,000,000,000.00 (fifteen billion rupiahs).
(2) The provisions an paragraph (1) shall not apply in respect of financial service providers fulfilling the obligation to report financial transactions as referred to in Article 13.
Any Indonesian citizen and/or Indonesian corporation that are/is outside the territory of the Republic of Indonesia to give help, a chance, facility, or information leading to a money laundering crime, shall be subject to the same penalty as that of a money laundering criminal as referred to in Article 3.
The financial service provider that does not intentionally convey a report to PPATK as referred to in Article 13 paragraph (1), shall be liable to a minimum fine of Rp250,000,000.00 (two hundred and fifty million rupiahs) and a maximum fine of Rp1,000,000,000.00 (one billion rupiahs).
Anybody that does not report money in the rupiah amounting to Rp100,000,000.00 (a hundred million rupiahs) or more brought into or from the territory of the Republic of Indonesia, shall be liable to a minimum fine of Rp100,000,000.00 (a hundred million rupiahs) and a maximum fine of Rp300,000,000.00 (three hundred million rupiahs).
PPATk, investigator, witness, public prosecutor, judge, or other person who is linked to a money laundering crime being investigated and violates the provisions in Article 39 paragraph (1) and Article 41 paragraph (1) of this Law, shall be sentenced to a minimum of 1 (one) year's imprisonment and a maximum of 3 (three) years` imprisonment.
(1) In the event that the convict can not afford the fines as referred to in Chapter II and Chapter III, the fines shall be replaced with 3 (three) years' imprisonment at the most.
(2) The imprisonment as a substitute for the fines as referred to in paragraph (1) shall be laid down in a court verdict.
The criminal offences as referred to in Chapter II and Chapter III shall be crimes.
(1) Any financial service provider shall send a report to PPATK as referred to in Chapter V, covering :
(2) A report on dubious financial transactions as referred to in paragraph (1) letter a shall be conveyed no later than 14 (fourteen) working days after being known by the financial service provider.
(3) A report on financial transactions made by cash as referred to in paragraph (1) letter b shall be conveyed no later than 14 (fourteen) working days after the transactions are made.
(4)The obligation of reporting as referred to in paragraph (1) letter b shall not apply in respect of transactions excepted from the obligation of reporting.
(5) The transactions excepted from the obligation of reporting as referred to in paragraph (3) shall cover inter-bank transactions, transactions made with the Government, transactions made with the central bank, salary payments, pensions and other transactions made at the request of the financial service provide with the approval of PPATK.
(6)The financial service provider shall make and keep a list of transactions excepted from the obligation of reporting as referred to in paragraph (4).
(7) Provisions on the model and type of and the procedure for conveying the report as referred to in paragraph (1) shall be further laid down in a Decision of the Chairman of PPATK.
In fulfilling the obligation of reporting a financial service-provider in the form of bank shall be exempted from provisions on the confidentiality of bank as provided for in the law on the confidentiality of bank.
A financial service provider as well as its officials and employees car not be indicted either by way of the civil code or the criminal code for fulfilling the obligation of reporting as referred to in Article 14.
(1) Anybody that brings money in the rupiah totaling Rp100,000,000.00 (a hundred million rupiahs) or more into or from the territory of the Republic of Indonesia shall report it to the Directorate General of Customs and Excise.
(2) The Directorate General of Customs and Excise shall report the information received by it within a period of 5 (five) working days as referred to in paragraph (1), to PPATK.
(3) The Directorate General of Customs and Excise shall inform PPATK of any violation of provisions in paragraph (1) no later than 5 (five) working days after it finds the violation.
(4)The report as referred to in paragraph (1) shall also contain detailed identity of the person making the report.
(5)If required, PPTAK can ask for additional information from the Directorate General of Customs and Excise about money in the rupiah totaling Rp100,000,000 (a hundred million rupiahs) or more brought by anybody from or into the territory of the Republic of Indonesia.
(1) Anybody that establishes business relations with a financial service provider shall provide his/her complete and accurate identity by completing the form made available by the financial service provider and enclosing supporting documents needed.
(2) A financial service provider shall make sure that financial service users act for themselves or for other person.
(3) In the event that a financial service user acts for other person, the financial service provider shall ask for the identity of the other person as well as its supporting documents.
(4) Where a financial service provider in the form of bank is concerned, the identity of financial service users as well as its supporting documents shall be adjusted to the existing laws and regulations.
(5) Any financial service provider shall keep records and documents on the identity of financial service users for 5 (five) years after the conclusion of business relations with the financial service users.
(1) PPATK shall be formed by virtue of this Law to prevent and eradicate money laundering crimes.
(2) PPATK as referred to in paragraph (1) shall be an independent institute in performing its duties-and authority.
(3) PPATK shall be responsible to the President.
(1) PPATK shall be based in the Capital of the Republic of Indonesia.
(2) If required, PPATK can open its representative offices in regions.
(1) PPATK shall be led by a chairman assisted by 4 (four) deputy chairmen at the most.
(2) The chairman and deputy chairmen as referred to in paragraph (1) shall be appointed and dismissed by the President at the request of the Minister of Finance.
(3) The tenure of the chairman and deputy chairmen as referred to in paragraph (1) shall be 4 (four) years and can only be extended for another 4 (four) years.
(4) The organizational structure and working system of PPATK shall be provided for in a Presidential Decree.
To qualify for the post of the chairman or deputy chairmen of PPATK, the candidate shall meet the following requirements :
(1) Before assuming their post, the chairman and deputy chairmen of PPATK shall swear an oath and promise before the Supreme Court Justice according to their respective religion or religious belief.
The oath and promise as referred to in paragraph (1) shall read as follows
The post of the chairman or deputy chairmen of PPATK shall be expired because the party concerned:
(1) The chairman and deputy chairmen of PPATK stall be dismissed because they :
(2) The Minister of Finance shall propose that the President dismiss the chairman or deputy chairmen of PPATK based on the provisions in paragraph (1).
(1) Any party shall be banned from making any kind of intervention in the execution of PPATK's duties and authority.
(2) The chairman and deputy chairmen of PPATK shall reject any intervention by any party in performing their duties and authority.
(3) In preventing and eradicating money laundering crimes, PPATK shall cooperate with relevant parties, either at a national or international level.
In performing its function, PPATK shall be assigned to:
(1) In performing its duties, PPATK shall be authorized to :
(2) In conducting the audit as referred to in paragraph (1) letter c, PPATK shall first coordinate with the institute in charge of supervising financial set-vice providers.
(3) In carrying out the authority as referred to in paragraph (1), PPATK shall not be subject to other laws related to the confidentiality of banks and other financial transactions.
(4) The procedures for executing the authority as referred to in paragraph (1) and paragraph (2) shall be further laid down in a Presidential Decree.
(1) The chairman of PPATK shall represent PPATK either inside or outside the court.
(2) The chairman of PPATK can delegate the authority as referred to in paragraph (1) to one of the deputy chairmen of PPATK or other party specifically appointed for that purpose.
(1) PPATK shall draw up an annual working plan and an annual budget.
(2) The annual working plan and annual budget as referred to in paragraph (1) shall be submitted through the State Secretariat.
Investigation, indictment and examination in a court trial in respect of the criminal offences as referred to in this Law shall be based on the Criminal Code, except otherwise stipulated by this Law.
In the event of a sign of alleged dubious transactions, no later than 3 (three) working days after the sign is found PPATK shall convey the result of its analysis to the investigator for follow-up action.
(1) Any investigator, public prosecutor or judge shall be authorized to order a financial service provider to block the wealth of anybody already reported by PPATK to the investigator, suspect, or defendant, and known or supposed to be the result of a criminal offence.
(2) The order from the investigator, public prosecutor or judge as referred to in paragraph (1) shall be made in writing by mentioning clearly :
(3) Shortly after receiving the order from the investigator, public prosecutor, or judge as referred to in paragraph (2), the financial service provider shall block the wealth.
(4) The financial service provider shall convey an official report on blocking the wealth to the investigator, public prosecutor, or judge no later than 1 (one) working day after the wealth is blocked.
(5) The wealth blocked shall remain on the hands of the financial service provider concerned.
(6) The financial service provider that violates the provisions in paragraph (3) and paragraph (4) shall be subject to administrative sanction within the framework of the existing laws and regulations.
(1) For the purpose of examination of money laundering crimes, the investigator, public prosecutor, or judge shall be authorized to ask for information from the financial service provider about the wealth of anybody already reported by PPATK, suspect or defendant.
(2) In asking for the information as referred to in paragraph (1), the investigator, public prosecutor, or judge shall not be subject to laws related to the confidentiality of banks and other financial transactions.
(3) The request for the information shall be made in writing by mentioning clearly
(4) The letter of request for the information as referred to in paragraph (1) and paragraph (2) shall be signed by
In the event of sufficient evidence resulting from the examination of a suspect in a court trial, the judge shall order the seizure of wealth known or supposed to be the result of a criminal offence and not yet confiscated by the investigator or public prosecutor.
For the purpose of examination m a court trial, the suspect shall prove that the wealth is not the result of a criminal offence.
(1) In the event that the defendant does not show up despite 3 (three) summons legally served on the defendant within the framework of the existing law and regulation, under an in-between verdict the Panel of Judges shall continue the examination without the presence of the defendant.
(2) In the event that the defendant shows up in the following court trial before the case is decided, the defendant shall be examined, and all testimonies of witnesses and letters read in the previous court trial shall have the same strength of authentication as that if the defendant shows up from the start of court trial.
(3) The verdict meted out without the presence of the defendant shall be announced by the public prosecutor on the announcement board in the court concerned and on at least 2 (two) newspapers with national circulation for at least 3 (three) consecutive days or in at least 3 (three) consecutive issues.
In the event that the defendant dies before the court verdict is meted out and there is strong evidence that the defendant has committed a money laundering crime, the judge shall issue a decision that the confiscated wealth of the defendant shall be seized for the benefit of the state.
Evidential proof for the examination of money laundering crimes shall be :
(1) PPATK, investigators, public prosecutors or judges shall keep the identity of informant secret.
(2) Violation of the provision in paragraph (1) shall give the informant or his/her beneficiary the rights to claim compensation through the court.
(1) Anybody that reports a suspected money laundering crime shall deserve special protection by the state against any eventuality that endangers his/her life and/or property, including that of his/her relatives.
(2) The procedures for providing the special protection as referred to in paragraph (1) shall be laid down in a Government Regulation.
(1) During a court trial, the witness, public prosecutor, Judge, and other person linked to a money laundering crime being examined shall be banned from mentioning the name or address of the informant or other matters that may lead to the disclosure of the identity of the informant.
(2) Before the examination of a case in any court trial begins, the judge shall remind the witness, public prosecutor, and other persons linked to the examination of the case, of the ban as referred to in paragraph (1).
(1) Anybody that gives testimonies in the examination of a money laundering crime shall deserve special protection by the state against any eventuality that endangers his life and/or property, including that of his/her relatives.
(2) The procedures for providing the special protection as referred to in paragraph (1) shall be laid down in a Government Regulation.
The informant and/or witness can not be indicted by virtue of the Criminal Code or the Civil Code for the information and/or testimonies as referred to in Article 40 and Article 42.
For the purpose of investigation, indictment and examination of people or corporations known or supposed to have committed money laundering crimes, regional and international cooperation may be established through a bilateral or multilateral forum within the framework of the existing law and regulation.
(1) The chairman and deputy chairmen of PPATK as referred to in Article 20 shall be appointed no later than 1 (one) year after the promulgation of this Law.
(2) PPATK shall perform its function no later than 6 (six) months after the appointment of the chairman arid deputy chairmen of PPATK.
(3) Before PPATK performs its function as referred to in paragraph (2), part of the duties and authority of PPATK particularly those related to financial service providers in the form of banks shall be carried out by Bank Indonesia within the framework of Bank Indonesia Regulation.
(4)The obligation of financial service providers to report financial transactions shall begin to take effect 18 (eighteen) months after the promulgation of this law.
This Law shall begin to take effect on the date of promulgation.
For public cognizance, this Law shall be promulgated by placing it in the Statute Book of the Republic of Indonesia.
Endorsed in Jakarta
On April 17, 2002
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,
sgd.
MEGAWATI SOEKARNOPUTRI
Promulgated in Jakarta
On April 17, 2002
THE STATE SECRETARY OF THE REPUBLIC OF INDONESIA,
sgd.
BAMBANG KESOWO