The BNN along with the PPATK has cracked a money laundering scheme run by drug dealers, confiscating Rp 6.4 trillion deposited at a number of domestic and and foreign banks in 2014-2016.
By
·5 minutes read
Kompas/Wisnu Aji Dewabrata
Stacks of banknotes are displayed on a table as masked suspects sit on chairs on Wednesday at the National Narcotics Agency (BNN) in Cawang, East Jakarta. Three suspects were arrested for laundering Rp 6.4 trillion in 2014-2016.
JAKARTA, KOMPAS — The National Narcotics Agency (BNN), along with the Financial Transaction Reports and Analysis Center (PPATK), has cracked a money laundering scheme run by drug dealers, confiscating Rp 6.4 trillion (US$640 billion) deposited at a number of domestic and foreign banks in 2014-2016. An earlier operation netted Rp 4.7 trillion from drug dealer Pony Tjandra, who serving out his jail sentence.
The Rp 6.4 trillion the largest ever drug-related haul.
With the addition of this discovery, drug-related financial transactions have become the second largest contributor to money laundering in the PPATK’s data after corruption cases. The third highest contributor is tax evasion.
Law enforcement expected to discover more funds in another money laundering scheme. "There is a bigger one, but it is being handled by the National Police. For the sake of the investigation, I cannot mention the amount," said PPATK head Kiagus Ahmad Badaruddin at a joint press conference on Wednesday (28/2) at BNN headquarters in Jakarta.
Also present at the press conference were BNN eradication deputy chairman Insp. Gen. Arman Depari and representatives of Bank Indonesia (BI), the Financial Services Authority (OJK) and the Directorate of Economic, Financial and Special Crimes (Tipideksus).
The BNN arrested three suspects in connection with the case, HR, DY and FH, at separate locations in Jakarta on Feb. 12-Feb. 14. DY is the primary suspect, who uses many aliases, and was difficult to track.
From the three, the BNN confiscated three apartment units, six shophouses, two shops, three cars, one house and Rp 1.6 billion, 78,815 yen and 5,377 Hong Kong dollars in cash. The total assets seized from the three was valued at Rp 65.9 billion.
The case unfolded from a tip the BNN received in 2017 on suspicious transactions that were believed to be money laundering schemes run by the Togiman, Haryanto Chandra, and Chandra Halim drug networks. The schemes were closely connected to Pony Tjandra and Fredy Budiman. Fredy was executed for his drug crimes.
PPATK inspection and research director Ivan Yustiavandana said the center had identified more than 5,000 transactions made by the suspects over two years. This amounted to dozens of suspicious transactions a day.
The Rp 6.4 trillion was netted as a result of the PPATK\'s investigation into 2,136 fictitious invoices at PT Prima Sakti Sejahtera (PT PSS).
All banking ransactions produce receipts, which the suspects had falsified. In tracking the invoices, the PPATK discovered a close connection between the fund’s recipients and suspects of previous drug cases.
Modus operandi
The method the three suspects used to launder the money was to establish six companies in the imports sector and another company dealing in foreign exchange. These companies were identified as PT PSS, PT UJS, PT DUV, PT GU, PT HCI, Devy and Rekan Sejahtera. DY served as commissioner of the companies, while HR and FH were directors.
BI executive director for communication Agusman, who was contacted on the use of foreign exchange for drug-related money laundering, said that was the PPATK’s domain.
"The PPATK can enter all areas. Coordination with other authorities certainly occurs. BI also participates," said Agusman.
According to the BNN’s Arman, the money was laundered across international borders. The suspects had set up bank accounts in 14 countries, including China, India, Malaysia, Singapore, Germany and Australia, for withdrawing or depositing the money made from drug trafficking. Besides using fictitious receipts, the money was transferred using company accounts, personal accounts and employee accounts that DY controlled in order to trick the banks.
To open employee accounts, the companies sent the employees abroad on the pretext of awarding the trip as a bonus. Upon their arrival at their overseas destination, the employees were asked to open bank accounts, which were then used to for holding or depositing the drug dealers’ money.
Arman said that the suspects of the case had been questioned by the National Police and the Jakarta Police in connection with online gambling. Several of the suspects’ companies had been linked to online gambling firms.
The BNN and the National Police are currently investigating whether the online gambling businesses were connected to drug-related money laundering.
The BNN is also using the latest findings to uncover local drug syndicates that are suspected of joining international drug networks. A number of international drug rings are active in Indonesia.
The focus of the BNN’s investigation is to uncover whether the overseas transactions dealt with buyers or manufacturers. Arman said the agency was following both the drug and money trails.
"If their assets are confiscated, the drug syndicates will collapse. [If they have] money, they can still operate and influence law enforcement," said Arman. One of the assets seized in the case was land in South Jakarta.
Using aliases
Arman explained that the BNN investigated the case over a year to identify the suspects, who frequently changed their identities. This made the identification process difficult, as they could not rely solely on their physical accounts and assets.
OJK investigation head Insp. Gen. Rokhmad Sunanto added the the identities, which were easily falsified, meant that the authority faced difficulties in verifying the suspects\' identity cards. He expressed his hope that the electronic ID card system could implement an effective single-identity design that would help reduce banking crimes.
"[The ID cards] look genuine, but turned out to be fakes. A single person can have many identities. With the electronic ID card, however, everything is integrated, from the police to immigration," Rokhmad said.
