PPATK launches FIR to fortify financial system integrity



Jakarta (ANTARA) – Financial Transaction Reports and Analysis Center (PPATK) developed and launched a macro review and micro-assessment instrument — Financial Integrity Rating (FIR) — on integrity of reporting parties of the Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT).

The FIR will assess the effectiveness of the ongoing AML/CFT program and implement the second Strategic Goals of the National Strategy for the Prevention and Eradication of Money Laundering and Terrorism Financing.

“FIR is also our effort to improve the assessment of Indonesia’s compliance with AML/CFT international standards, known as the mutual evaluation review (MER),” Head of PPATK, Dian Ediana Rae, noted in a release issued by the PPATK and received here on Friday.

“The FIR is expected to be one of the tools to boost our assessment that still touches moderate on the aspect of preventive measure,” Rae remarked.

As a start, the new FIR has targeted 108 commercial banks. The FIR stages comprise a pilot project for 10 commercial banks to obtain inputs on FIR Academic Manuscripts, as well as testing the validity and reliability of the instruments.

The next stage was the implementation of FIR for the 108 commercial banks. In future, the FIR will involve other reporting parties, such as insurance, capital market, and other financial institutions.

The FIR assessment covers three dimensions, with the first measuring the level of commitment of the reporting party in supporting PPATK and law enforcement agencies to trace financial transactions indicated by money laundering and terrorism financing.

The second dimension evaluates the level of implementation of AML/CFT reporting governance in accordance with the provisions of the supervisory and regulatory agency and the PPATK reporting guidelines.

The third dimension measures the level of compliance of the reporting party with the obligation to report to PPATK, as well as the formal and material quality of all submitted reports.

“The FIR will play a crucial role in formulating policies, fostering, regulating, and supervising reporting parties in strengthening the AML/CFT system as well as strengthening the integrity of the national financial system,” Rae explained.

He elaborated that the FIR generated aggregate and individual bank value. Assessment of individual banks is aimed at determining the mapping of each dimension and defining the requisite corrective measures to be taken in accordance with the conditions of each bank.

In aggregate, the FIR value is in the Medium position, with a value of 7.54.

He further noted that in general, the implementation aspects of reporting governance and reporting compliance with reporting obligations are already at a high number.

However, it is still necessary to increase the commitment of reporting parties in supporting the tasks of PPATK and law enforcement agencies.

“The FIR measurement is expected to become a benchmark for PPATK and the supervisory and regulatory agencies in formulating policies for guidance, supervision, and regulation to strengthen the AML/CFT system in each reporting parties, in particular, as well as strengthening the integrity of the financial system,” Rae stated.

Furthermore, he asserted that stronger integrity would boost Indonesia’s trust and credibility in the global financial system and economy.



Source: Antara News