to Indonesian

LAW OF THE REPUBLIC OF INDONESIA
No.25/2003

CONCERNING
THE AMENDMENT TO LAW NO.15/2002 CONCERNING MONEY LAUNDERING CRIME

BY GRACE GOD THE ALMIGHTY
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering :

• a. that in a, bid to ensure the effective prevention and eradication of money laundering crime, Law No.15/2002 on money laundering crime needs to be adjusted to developments of criminal law on money laundering and international standards;
• b. that based on the consideration as meant in letter a, Law No.15/2002 on money laundering crime needs to be amended;

In view of :

• 1. Article 5 paragraph (1) and Article 20 of the Constitution of 1945;
• 2. Law No.15/2002 on money laundering crime (Statute Book of 2002 No. 30, Supplement to Statute Book No. 4191);

With collective approval of
THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OFINDONESIA
and
THE PRESIDENT OF THE REPUBLIC OF INDONESIA

HAS DECIDED:

To stipulate :

THE LAW ON THE AMENDMENT TO LAW NO. 15/2002 CONCERNING MONEY LAUNDERING CRIME

Article I

Several provisions in Law No.15/2002 on money laundering crime (Statute Book of 2002 No.20, Supplement to Statute Book No.4191) are amended as follows:

1. The provisions in Article 1 point 4, point 6 are amended and two new points are supplemented so that Article 1 entirely reads as follows:

"Article 1

Referred to in this law as:

• 1. Money laundering is an act of placement, transfer, payment, spending, granting, donation, depositing, carrying abroad, changing or other acts for assets ascertained to come from or allegedly resulting from crimes with a view of obscuring or making origin of the assets vague so that the assets seem legitimate.
• 2. Everybody is individual or corporation.
• 3. Corporation is a group of people and/or assets organized properly, which constitutes statutory body or non-statutory body.
• 4. Assets are all movable or immovable goods, be they tangible or intangible.
• 5. Financial service provider is everybody rendering service in the financial sector or other services related to finance, including but not limited to bank, financing institution, securities company, management fund, custodian, trustee agent, depositing and settlement institution, foreign currency trader, pension funds, insurance firm and post office.
• 6. Transaction is all activities resulting in rights and obligations or legal relations between two parties or more, including the transfer and/or book-transfer of fund by financial service provider.
• 7. Suspicious financial-transaction is:
• a. financial transaction deviating from profile, characteristic or custom of transaction pattern of the customer;
• b. financial transaction by customer allegedly executed with a view of avoiding the reporting of the transaction which must be done by financial service provider in accordance with the provisions in this law; or
• c. financial transaction executed or failing to execute by using assets allegedly coming from crime.
• 8. Cash financial-transaction is a transaction of withdrawal, remittance or depositing in cash or other payment instruments through financial service provider.
• 9. Document is data, record or information which can be seen, read and/or heard, can be downloaded with or without an instrument, contained on paper, whatever physical goods other than paper, or recorded electronically, including but not limited to:
• a. writing, voice or picture;
• b. map, design, photo or the like;
• c. letter, mark, figure, symbol or perforation meaningful or understandable by people capable of reading or understanding it.
• 10. Financial Transaction Analysis and Reporting Center hereinafter called PPATK is an independent institution established in the framework of preventing and eradicating money laundering crime."

2. The provision in Article 2 is amended so as to entirely read as follows:

"Article 2

(1) Results of crimes are assets earned from crimes:

• a. corruption;
• b. bribery;
• c. smuggling of goods;
• d. smuggling of workers;
• e. smuggling of immigrants;
• f. in the banking sector;
• g. in the capital market sector;
• h. in the insurance sector;
• i. narcotics;
• j. psychotropic;
• k. human trafficking;
• l. illegal weapon trade;
• m. abduction;
• n. terrorism;
• o. theft;
• p. embezzlement;
• q. deceit;
• r. money forgery;
• s. gambling;
• t. prostitution;
• u. in the taxation sector;
• v. in the forestry sector;
• w. in the environmental sector;
• x. in marine; or
• y. other crimes liable to imprisonment for 4 (four) years or more,which are executed in the territory of the Republic of Indonesia or outside the territory of the Republic of Indonesia and the crimes are also categorized as crimes according to the Indonesia Law.

(2) Assets used directly or indirectly for terrorism are treated such as results of the crime as meant in paragraph (1) letter n."

3. The provision in Article 3 paragraph (1) is amended so as to read as follows:

"Article 3

(1) Everybody intentionally

• a. placing assets ascertained or allegedly resulting from crimes in financial service provider under their names or on behalf of other parties;
• b. transferring assets ascertained or allegedly resulting from crime of a financial service provider into ether financial service providers under their names or on behalf of other parties;
• c. paying or spending assets ascertained or allegedly resulting from crimes committed under their names or on behalf of other parties;
• d. granting or donating assets ascertained or allegedly resulting from crimes under their names or on behalf of other parties;
• e. depositing assets ascertained or allegedly resulting from crime under their names or on behalf of other parties;
• f. carrying abroad assets ascertained or allegedly resulting from crimes; and
• g. changing or taking other actions against assets ascertained or allegedly resulting from crime by other currencies or securities, with a view of obscuring or making origin of the assets unclear, is sentenced for committing money laundering crime by imprisonment for 5 (five) years at the minimum and 15 (fifteen) years at the maximum and a fine of Rp 100,000,000.00 ( one hundred million rupiahs) at the minimum or Rp. 15,000,000,000.00 (fifteen billion rupiah at the maximum."

4. The provision in Article 6 paragraph (i) is amended s; as to read as follows:

"Article 6

(1) Everybody receiving or controlling:

• a. placement;
• b. transfer;
• c. payment;
• d. grant;
• e. donation;
• f. depositing; or
• g. exchange;

of assets ascertained or allegedly resulting from crime is sentenced by imprisonment for 5 (five) years at the minimum and 15 (fifteen) years at the maximum and a fine of Rp 100,000,000.00 (one hundred million rupiahs) at the minimum or Rp 15,000,000,000.00 (fifteen billion rupiahs) at the maximum."

5. The provision in Article 9 is amended so as to read as follows:

"Article 9

Everybody not reporting cash money amounting to Rp 100,000,000.00 (one hundred million rupiahs) or more or foreign currencies with the value equivalent to the amount, which is carried into or outside the territory of the Republic of Indonesia is subjected to a fine of Rp 100,000,000.00 (one hundred million rupiahs) at the minimum and Rp 300,000,000.00 (three hundred million rupiahs) at the maximum."

6. A new article is supplemented between Article 10 and Article 11 to become Article 10A, which reads as follows:

"Article 10A

(1) Officials or employees of PPATK, investigators, prosecutors, judges and whoever obtaining documents and/or information in the framework of executing their tasks according to this law are obliged to keep the documents and/or information in secrecy, unless otherwise fulfilling obligations according this law.

(2) Sources of information and reports on suspicious financial transactions must be kept in secrecy in the court session.

(3) Officials or employees of PPATK, investigators, prosecutors, judges and whoever violating the provisions in paragraphs (1) and (2) because of their negligence are imprisoned one year at the minimum and 3 (three) years at the maximum.

(4) If the provisions in paragraphs (1) and (2) are violated intentionally, the actors are sentenced to imprisonment for 5 (five) years at the minimum and 15 (fifteen) years at the maximum."

7. The provisions in Article 13 paragraphs (1), (2) and (5) are amended and two new paragraphs are supplemented to become paragraphs (1a) and (6a) so as to read as follows:

"Article 13

(1) Financial Service Provider shall submit a report to PPATK referred to in Chapter V, for the following things:

• a. Suspicious Financial Transactions;
• b. Financial transactions are made in cash in the cumulative amount of Rp 500,000,000.00 (five hundred million rupiah) or more or foreign currency equivalent, both performed in a single transaction or several transactions in 1 (one) working days.

(1a) Any change in the amount of the cash financial-trans action as meant in paragraph (1) letter b is stipulated by a decision of the Head of PPATK.

(2) Report on the suspicious financial transaction as meant in paragraph (1) letter a is conveyed not later than 3 (three) working days after financial service providers ascertain elements of suspicious financial transaction.

(3) Report on the cash financial transaction as meant in paragraph (1) letter b is conveyed not later than 14 (fourteen) working days as from the date of transaction.

(4) The reporting obligation as meant in paragraph (1) letter b does not apply to the excepted transactions.

(5) The transactions excepted from the reporting obligation as meant in paragraph (4) include inter-bank transactions, transactions with the government, transactions with the central bank, payment of salaries, pensions and other transactions stipulated by the Head of PPATK or on the basis of request of financial service provider approved by PPATK.

(6) Financial service providers are obliged to make out and save lists of the excepted transactions as meant in paragraph (4).

(6a) Financial service providers can be excepted from the obligation to make out and save the lists of the excepted transactions as meant in paragraph (6) for one year as from the date of granting of the exception.

(7) Provisions on model, type and procedures for conveying the report as meant in paragraph (1) are further regulated by a decision of the Head of PPATK."

8. The provision in Article 15 is amended so as to read as follows:

"Article 15

No civil or criminal lawsuit can be filed against financial service providers, their officials and employees with regard to the implementation of the reporting obligation as meant in Article 13."

9. The provisions in Article 16 paragraphs (1) and (5) are amended so as to read as follows:

"Article 16

(1) Everybody carrying cash money amounting to Rp 100,000,000.00 (one hundred million rupiahs) or more, or foreign currencies with the value equivalent to the amount into and outside the territory of the Republic of Indonesia must report to the Directorate of Customs and Excise.

(2) The Directorate General of Customs and Excise is obliged to convey report on information the agency receives for 5 (five) working days as meant in paragraph (1) to PPATK.

(3) The Directorate General of Customs and Excise is obliged to notify PPATK not later than 5 (five) working days after ascertaining violation of the provision as meant in paragraph (1).

(4) The report as meant in paragraph (1) also must contain details of identities of people making out the reports.

(5) If necessary, PPATK can ask additional information from the Directorate General of Customs and Excise on the cash money amounting to Rp 100,000,000.00 (one hundred million rupiahs) or more or foreign currencies with the value equivalent to the amount, carried by everybody from or into the territory of the Republic of Indonesia."

10. A new article is supplemented between Article 17 and Article 18 to become Article 17A, which reads as follows:

"Article 17A

(1) Executive directors, officials or employees of financial service providers are prohibited from notifying financial service users or other parties directly or indirectly by whatever means reports on suspicious financial transactions being formulated or already conveyed to PPATK.

(2) Officials or employees of PPATK as well as investigators are prohibited from notifying reports on suspicious financial transactions to financial service users, already reported to PPATK or investigators directly or indirectly by whatever means.

(3) Executive directors, officials or employees of financial service providers, officials or employees of PPATK as well as investigators violating the provision as meant in paragraphs (1) and (2) are sentenced to imprisonment for 3 (three) years at the minimum and S (five) years at the maximum and a fine of Rp 100,000,000.00 (one hundred million rupiah) at the minimum or Rp 1,000,000,000.00 (one billion rupiahs) at the maximum."

11. Elucidation on Article 25 paragraph (3) is amended as contained in elucidation.

12. The provision in Article 26 is amended by supplementing a new letter to become letter i, which reads as follows:

"Article 26

In executing the functions, PPATK is assigned:

• a. to gather, save, analyze, evaluate information obtained by PPATK in accordance with this law;
• b. to monitor records in books of lists of exception made by financial service providers;
• c. to make guideline on procedure for reporting suspicious financial transactions;
• d. to give advice and assistance to the authorized institution with regard to information obtained by PPATK in accordance with the provisions in this law;
• e. to prepare guidelines and publications for financial service providers with regard to their obligations stipulated in this law or other legislation and help detect behaviors of suspicious customers;
• f. to give recommendations to the government about efforts to prevent and eradicate money laundering;
• g. to report results of analyses of financial transactions containing indications of money laundering crime to the police or prosecutor office;
• h. to make out and give up report on results of analyses of financial transactions and other activities periodically, every six months, to the President, House of Representatives, and institutions authorized to supervise financial service providers;
• i. to provide information for the public on institutional performance as long as the provision of the information does not contravene this law."

13. The provision in Article 29 paragraph (2) is amended so as to read as follows:

"Article 29

(1) PPATK is obliged to formulate annual working plan and budget every year.

(2) The annual budget of PPATK originates from the State Budget of Revenue and Expenditure."

14. To supplement new articles after Article 29 to become Articles 29A and 298, which read as follows:

"Article 29A

Regulation of personnel affairs, remuneration system, appreciation, functional allowance, old-age allowance as well as other income of officials and employees of PPATK are stipulated by a presidential decree in accordance with the provisions of laws in force."

"Article 29B

In order to make the prevention and eradication of money laundering crime more effective, the President can establish a national coordination committee on the basis of recommendation of the Head of PPATK."

15. The provision in Article 33 paragraph (4) is amended so as to read as follows:

"Article 33

(1) In interests of investigation into money laundering -rime cases, investigators, prosecutors or judges are authorized to ask information from financial service providers on assets of everybody already reported by PPATK, suspects or defendants.

(2) In asking for information as contemplated in paragraph (1) above, statutory provisions regulating on bank confidentiality and the secrecy of other financial transactions are not applicable to investigators, prosecutors or judges.

(3) The request for obtaining the information must be made in writing by mentioning clearly:

• a. name and position of investigator, prosecutor or judge;
• b. identity of everybody already reported by PPATK, suspects or defendants;
• c. suspected or charged crimes; and locations of assets.

(4) The request for obtaining the information as meant in paragraphs (1) and (2) must be signed by:

• a. Attorney General of the Republic of Indonesia or the Head of Provincial Attorney Generals Office in case the request is submitted by public prosecutor;
• b. The Presiding Judge who examines the relevant case;
• c. Judge presiding over the panel examining the case."

16. The provision in CHAPTER VIII is amended so as to read as follows:

"CHAPTER III
RECIPROCAL ASSISTANCE IN MONEY LAUNDERING ISSUE

Article 44

(1) In the framework of preventing and eradicating money laundering crime, mutual assistance cooperation in the field of law with other states through bilateral or multilateral forums can be established in accordance with the statutory regulations.

(2) The mutual assistance cooperation as contemplated in paragraph (1) above can be conducted in case the state in question has ever established mutual assistance cooperation with the Republic of Indonesia or based on reciprocity principle.

(3) Request fro mutual assistance cooperation from and to other states shall be submitted to and by the Minister in charge of law and legislation.

(4) The minister can deny the request for mutual legal assistance cooperation from other countries in the case of the action submitted by the other countries can disturb national interests or the request is related to litigation against political cases or litigation related to ethnic, religion, race, nationality, or political stance of someone.

Article 44A

(1) The mutual legal assistance cooperation as meant in Article 44 includes:

• a. returning the evidences and statement of someone, including execution of rogatory letter
• b. granting of evidences in the form of documents or other records;
• c. identifying and locating whereabouts of someone;
• d. implementation of request for searching evidence and confiscation;
• e. efforts to find out, freeze and seize results of crime;
• f. seeking for approval of persons who will act as witness or assist investigation in the requesting country
• g. other assistances consistent to the objectives of establishing mutual cooperation that do not contradict to the statutory regulations.

(2) In the framework of establishing mutual assistance cooperation as contemplated in paragraph (1), the Minister in charge of law and legislation may ask the competent authority to take policing action in the form of searching, blocking, seizure, documentary examination, taking information, or other matters in conformity with the provisions and requirements as provided for in the Criminal Procedure Law and this Law.

(3) Evidences, statements, documents, or other records as contemplated in paragraph (1) are proof tools used in examination of money laundering crimes in accordance with the statutory regulations."

17. Between Chapter VIII and Chapter IX, 1 (one) new chapter is inserted to become Chapter VIIIA on Other Provisions, containing 1 (one) article, so that it shall read as follows:

"CHAPTER VIIIA
MISCELLANEOUS PROVISION

Article 44B

In the case of developments in international conventions or recommendations in the prevention and eradication of money laundering crimes, PPATK can implement the provisions according to this law in accordance with legislation."

Article II

This law comes into force as from the date of promulgation.

For public cognizance, this Law shall be announced by placing it in the Statute Book of the Republic of Indonesia

Ratified in Jakarta
On October 13, 2003
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
sgd
MEGAWATI SOEKARNOPUTRI

Promulgated in Jakarta
On October 13,2003
THE STATE SECRETARY OF THE REPUBLIC OF INDONESIA
sgd
BAMBANG KESOWO