INDONESIA REQUESTS SUPPORT IN ADVANCE OF FATF

C O N F I D E N T I A L JAKARTA 000140 DEPT FOR EAP, EAP/MTS, EAP/RSP, INR/EAP, S/CT FOR M. NORMAN, INL FOR SILENSKY, EEB/ESC/TFS DOJ FOR AAG SWARTZ, OPDAT FOR ALEXANDRE/BERMAN/HAKIM NCTC NSC FOR D.WALTON TREASURY FOR IA, TFFC, OIA AND FINCEN SINGAPORE FOR S.BLEIWEIS E.O. 12958: DECL: 02/01/2020 TAGS: PGOV PREL KTFN KCRM KJUS PTER EFIN SNAR PHUM ASEC, ID SUBJECT: INDONESIA REQUESTS SUPPORT IN ADVANCE OF FATF PLENARY; GOVERNMENT POISED TO DELIVER AMENDED AML BILL TO PARLIAMENT REF: (A) JAKARTA 136 (B) 2009 JAKARTA 1995 Classified By: DCM Ted Osius for reasons 1.4 (b) and (d) ¶1. (C) In a meeting January 29, Ministry of Foreign Affairs Director General for Multilateral Affairs Ambassador Rezlan Jenie told the DCM that Indonesia fully understands the need to improve its anti-money laundering/countering terrorist financing (AML/CFT) efforts. MFA staff reported that the government has nearly completed final steps (securing signatures of the Minister of Finance and the Minister of Political, Legal and Human Rights) required for President Yudhoyono to deliver to parliament a bill amending AML legislation consistent with FATF recommendations. Jenie also advised that Indonesia had included the amended AML bill in the priority list of the 2010 National Legislation Program of the parliament and expected it would be adopted by parliament by August 2010. The draft Terrorism Financing bill has been included in the 2010-2014 National Legislative Program and is expected to be delivered to parliament by June 2010. ¶2. (C) Jenie said the government of Indonesia is extremely concerned about the possibility that Indonesia could be included in a high-risk jurisdiction list by the upcoming Financial Action Task Force (FATF) Plenary Meeting in Abu Dhabi February 15-19 as a result of the International Cooperation Review Group (ICRG) review of countries with AML/CFT deficiencies. He said Indonesia is seriously committed to increasing the effectiveness of its AML/CFT regime. In addition to advancing legislation that will improve Indonesia's AML/CFT legal framework, Jenie highlighted Indonesia's improved record of AML/CFT investigations and prosecutions, as well as its extensive cooperation with international, regional and bilateral partners, including with the U.S, to counter terrorism. ¶3. (C) Jenie said Indonesia does not belong in the same basket as North Korea and Yemen. He noted that Indonesia's strong CT record and substantial work to advance draft legislation to parliament that is responsive to FATF recommendations reflect Indonesia's commitment to improve its AML/CFT regime. Jenie asserted that inclusion of Indonesia in a list of high-risk jurisdictions will undercut the efforts of those GOI officials driving improvements to the AML/CFT regime and bolster critics who claim Indonesia receives no credit for its efforts. ¶4. (C) Jenie said Indonesia seeks support from the U.S. to prevent Indonesia's inclusion in a list of high-risk jurisdictions. He advised that the government of Indonesia had already consulted with diplomats from Australia, Japan, Korea, and the Netherlands, and intended to discuss the issue with representatives of Canada, Italy and Singapore. He indicated the Indonesian Embassy in Washington may approach Department of Treasury Deputy Assistant Secretary Dan Glaser regarding this issue in advance of the upcoming FATF plenary. HUME