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New Money Laundering Act – Law On The Prevention And Eradication Of Money Laundering

October 20, 2010

There are some important provisions in the New Money Laundering Act which were not found in the previous act, among others: (a) in order to prevent multiple interpretations, the New Money Laundering Act makes the money laundering criminalization elements clearer. This is implemented by making liable to criminal prosecution every person who hides or disguises the origin, source, location, allocation, transfer of rights, or ownership of property known or reasonably suspected to be proceeds of a crime; (b) it gives the Centre for Report and Analysis of Financial Transactions (Pusat Pelaporan dan Analisis Transaksi Keuangan/PPATK) additional authorization to freeze a suspicious financial transactions while indications of money laundering or other crimes are examined by PPATK. The suspension can be applied to the whole or part of the transaction; (c) adding other providers of goods or services, i.e. property companies or agents, motor dealers, jewelers, art and antique dealers, and auction houses to bank as required to give information of any suspicious financial transactions; and (d) the establishment of regional prevention and eradication units by giving each region the opportunity to establish its own PPATK to make it easier for regional law enforcers to combat money laundering in their own city or province.

By those improvements and additions, as stated by the Indonesian Minister of Law and Human Rights, Patrialis Akbar, in the DPR plenary meeting on the ratification of this New Money Laundering Act, the New Money Laundering Act will assist in the search for and return of the proceeds for crimes. In the transitional period for these laws, every offense in this area committed before the validity of the New Money Laundering Act will be examined and decided in accordance with Law 15/2002.