ICAEW to Contribute to G20 Anti-Money Laundering Talks

DigitalCFO Newsroom | 26 September 2022

The Business 20 (B20) Integrity and Compliance Task Force will hold a conference on 28 September to put a spotlight on one of its policy recommendations.

The impact of money laundering, the process by which profits from illegal activities are disguised and made to appear legitimate, can be devastating and should not be underestimated. More than just financial fraud, the laundering can fund, (and includes the financial proceeds of) other serious crimes such as modern slavery, drug trafficking, corruption, and terrorism.

The Business 20 (B20) Integrity and Compliance Task Force will hold a conference on 28 September to put a spotlight on one of its policy recommendations, namely fostering agility in countermeasures to combat the risk of money laundering and terrorism financing.

Indonesia is a member state of the G20 with a GDP of over US$1 billion, making it the largest economy in Southeast Asia. As the business, information, and technology environments are becoming increasingly complex, the government requires all financial organisations in the country to implement effective anti-money laundering (AML) efforts by actively combating the risks that might occur.

In parallel, Indonesia established the Indonesian Financial Transaction Reports and Analysis Centre (PPATK), the country’s independent financial intelligence unit, earlier this year to fight financial crimes. Its inception has led to more AML laws. Today, PPATK receives almost 50,000 financial transactions to analyse every hour.

The Indonesia B20 Integrity and Compliance Task Force was also formed to seek actionable policy recommendations to overcome business challenges like money laundering and terrorism financing in the country. The task force is closely discussing environmental, social, and governance (ESG) issues. Chair of the task force, Haryanto T. Budiman, said they would prioritise three aspects, namely corruption, corporate governance, and digital crimes.

During the B20-G20 Integrity and Compliance Task Force dialogue in June, PPATK stated that it supported B20’s strategic efforts to combat various economic risks, including the risk of money laundering and terrorism financing. These efforts are especially important considering that Indonesia is in the process of becoming a full member of the Financial Action Task Force (FATF) on money laundering.

The Institute of Chartered Accountants in England and Wales (ICAEW), a member of the B20 Integrity and Compliance Task Force, fully supports the nation’s AML campaign. Elaine Hong, ICAEW Regional Director for China and South-East Asia, said, “ICAEW sees that Indonesia’s G20/B20 momentum in 2022 is an ideal time for governments to agree on tangible actions against economic crimes and those who launder their proceeds. With countries recovering from the pandemic facing economic challenges and new technology presenting opportunities for criminal activities, it is important that governments and the private sector work hand in hand to put in place strong countermeasures against economic crimes. We have been persistent in providing guidance and resources to members and nations around the globe, as well as robust anti-money laundering supervision through a risk-based approach, and we will continue to do so.”

ICAEW has continued to partner with governments and law enforcers worldwide. For example, in the UK ICAEW participates actively in public-private forums such as the Economic Crime Strategic Board, the Joint Fraud Task Force, the AML Supervisors Forum, and the Accountancy AML Supervisors Group (AASG).

As part of the B20 task force, ICAEW is critical in addressing economic challenges. With its commitment to bring together leading figures of the B20 to identify routes for early action, ICAEW is actively participating in the task force and will be presenting B20 Integrity and Compliance Task Force conference on 28 September. The conference, which will discuss countermeasures against money laundering and terrorism financing, will bring together experts from ICAEW, Her Majesty’s Revenue and Customs (HMRC), Indonesia Banking Compliance Director Communication Forum, EY Indonesia, and the Indonesian Financial Transaction Reports and Analysis Center (PPATK).

The conference will be in a hybrid online-offline format and divided into two sessions. The first session will feature the first international screening of ICAEW’s latest training film, All Too Familiar. It’s a high-quality drama created by ICAEW in collaboration with HMRC to challenge mindsets and provoke discussion of the need for greater professional scepticism to identify the risks of economic crimes, particularly money laundering. In the second session, ICAEW experts will shed light on several case studies and insights related to money laundering.

Conny Siahaan, Head of Indonesia at ICAEW, said, “As a member of the B20 Integrity and Compliance Task Force, ICAEW supports the task force’s recommendations to mitigate money laundering practices and strengthen corporate governance in Indonesia. We hope that through this conference, all participants can help our mission to raise public awareness of the importance of customer due diligence and public education about the risks of economic crimes, which everyone can help combat.”

The B20 Integrity and Compliance Task Force Conference: Fostering Agility to Combat Money Laundering and Economic Crimes will take place on Wednesday, 28 September 2022, from 01.30 to 08.00 p.m. West Indonesia time.