Nusa Dua
(Antara Bali) - The Financial Transactions Analysis and Reporting Center
(PPATK) plans to monitor the flow of funds to foundations or charities
in a bid to prevent terrorism funding.
"We will formulate a regulation to serve as a foundation to conduct monitoring and at the same time establish a regulator," PPATK Chief Muhammad Yusuf stated on the sidelines of a meeting on counterterrorism funding here on Thursday.
He noted that with the implementation of the policy, the flow of funds could be regulated and audited.
No supervision has, so far, been conducted as the flow of funds to foundations or charities are sporadic in nature unlike those to banks and other financial institutions, which are monitored by the Financial Services Authority.
In line with the money laundering law and in the absence of a regulator, Yusuf affirmed that the supervision of funds to foundations or charities will be taken over by PPATK.
He pointed out that the PPATK would disseminate information on the management of foundations with regard to preventing irresponsible parties from using them as a medium to transfer funds for terrorism activities.
"There are hundreds of thousands of foundations in the country, and we fear they are ignorant about the issue," he emphasized.
He noted that the PPATK would also urge foundations that receive funds to provide clarification regarding the origins of the funds.
Using foundations or charities for money laundering has been one of the means used by terrorists to source fund for their activities.
The PPATK has recently suspected a transfer of funds worth Rp7 billion from an individual in Australia to a foundation in Indonesia before they were transferred to his wife`s account and then to a foundation and were later disbursed.
"The case is still being probed by the law enforcement agency to find if the funds were to be used for charity or for conducting terrorism activities," he added. (WDY)
COPYRIGHT © ANTARA News Bali 2016
"We will formulate a regulation to serve as a foundation to conduct monitoring and at the same time establish a regulator," PPATK Chief Muhammad Yusuf stated on the sidelines of a meeting on counterterrorism funding here on Thursday.
He noted that with the implementation of the policy, the flow of funds could be regulated and audited.
No supervision has, so far, been conducted as the flow of funds to foundations or charities are sporadic in nature unlike those to banks and other financial institutions, which are monitored by the Financial Services Authority.
In line with the money laundering law and in the absence of a regulator, Yusuf affirmed that the supervision of funds to foundations or charities will be taken over by PPATK.
He pointed out that the PPATK would disseminate information on the management of foundations with regard to preventing irresponsible parties from using them as a medium to transfer funds for terrorism activities.
"There are hundreds of thousands of foundations in the country, and we fear they are ignorant about the issue," he emphasized.
He noted that the PPATK would also urge foundations that receive funds to provide clarification regarding the origins of the funds.
Using foundations or charities for money laundering has been one of the means used by terrorists to source fund for their activities.
The PPATK has recently suspected a transfer of funds worth Rp7 billion from an individual in Australia to a foundation in Indonesia before they were transferred to his wife`s account and then to a foundation and were later disbursed.
"The case is still being probed by the law enforcement agency to find if the funds were to be used for charity or for conducting terrorism activities," he added. (WDY)
Editor : I Gusti Bagus Widyantara
COPYRIGHT © ANTARA News Bali 2016