Money Changers Join Anti-Corruption Fight

As part of its efforts to combat money laundering, the Financial Transaction Reports and Analysis Center (PPATK) of the Government of Indonesia has instituted a program to recognize and promote authorized money changers.

The Authorized Money Changers program, supported by USAID Indonesia through the Millennium Challenge Corporation’s Indonesia Control of Corruption Project (MCC/ ICCP), provides recognition and branding materials to money changers certified by the program. The program is also working— via posters and brochures at airports and in hotel rooms in Bali— to educate the public on the importance of using authorized money changers.

Money changers who are part of the Authorized Money Changers program have taken an oath to work with integrity and professionalism. Additionally, they are trained on how to spot suspicious transactions which are then reported to PPATK. The program also includes a complaint line and website for customers to provide feedback.

Almost $2.9 billion is exchanged at money changers every year in Indonesia, with nearly 85% of that activity occurring in Jakarta and Denpasar, Bali.

If an individual has money from illicit sources (e.g., drug sales or bribes), he/she will often try to disguise the original source of the money through money laundering. This can be done through a number of ways, including buying assets such as a car or apartment. Money can also be “cleaned” by going to a money changer and receiving foreign currency in exchange. By professionalizing and regulating Authorized Money Changers, the government of Indonesia aims to further marginalize money laundering and make the process more difficult and less lucrative for individuals involved.

The Authorized Money Changers program is part of larger anti-corruption efforts with the MCC/ ICCP. Additional work includes implementation of administrative reforms and greater judicial transparency, increased enforcement capabilities to fight money laundering, prosecution of cases of public corruption, and reduction of opportunities for corruption through the modernization of public procurement systems.

For more information on the MCC Threshold Program in Indonesia, which is implemented by USAID Indonesia, please see /en/Program.8.aspx.

All MCC Threshold Program activities