Indonesia acts

The Indonesian House of Representatives passed the money laundering bill at the end of March but legal experts believe that it may be flawed.The Constitution requires a minimum of half the 500 legislators to pass any law but only 10 per cent were present. Its passage has assumed political significance ahead of the Indonesian government’s meeting with the Paris Club of creditor nations this month when it will seek to reschedule some US$5.5 billion in debt. The Paris Club has made the money laundering statute one of the conditions for restructuring payment. Under the new law, money laundering offences carry prison terms of between five and fifteen years and fines of between Rp 5 billion (approximately US$510,000) and Rp 15 billion. It also provides for establishment of Financial Transaction and Report Analysis Center (PPATK). PPATK will investigate and monitor the flow of suspicious transaction reports.