The Indonesian government has proposed a law to Parliament to limit cash transactions to curb bribery and money laundering in the country, the head of the Indonesia’s anti-money laundering watchdog has said.
The draft Bill, which limits any cash payments to a maximum 100 million rupiah, will be assigned as a legislative priority for this year, said Mr Ki Agus Badaruddin, head of the Financial Transaction Reports and Analysis Centre (PPATK), adding that he hoped the Bill can be approved later this year.
“Basically, the assumption is this restriction will reduce the space in which one can commit acts of money laundering and terrorism financing,” said Mr Badaruddin yesterday.
Some 85 percent of transactions in Indonesia are in cash and are harder to track than those done through banks or other electronic channels, making it a challenge for the government to fight money laundering, corruption and terrorism financing.
Mr Badaruddin was cited by media as saying PPATK had detected a rise in bribery, with most transactions done with cash.
No details were given on how such a law could be enforced.
Source: Straits Times
Photo courtesy of Reuters