The Indonesian Financial Transaction Reports and Analysis Centre (PPATK) held a meeting on Wednesday (27/7) night with the Financial Services Authority (OJK). Also present were representatives from the Directorate General of Taxation and a number of banks.
“The Directorate General of Taxation, OJK and the banks agreed to create special accounts for repatriated funds,” PPATK Deputy Head Agus Santoso told Katadata on Thursday (28/7).
He also said a new customer information file (CIF) will be created along with these special bank accounts. The CIF will record and store a customer’s personal data, financial data and other relevant data.
Executive Director of the Center for Indonesian Taxation Analysis (CITA) Yustinus Prastowo said these special accounts would also be part of the tax amnesty confidentiality deal. (Read: Severe Sanction for Cheating Banks, Tax Amnesty Participants)
“Aside from being easier to monitor, it would prevent (the funds) from being misused,” Prastowo told Katadata. He explained that other countries, such as Italy, usually create intermediary accounts to hold repatriated funds.
However, he underlined that the most important thing is coordination to ensure that there is no overlapping of procedures between institutions. He used the ‘know your customers’ (KYC) procedure as an example.
Previously, the Finance Ministry’s Directorate General of Financing and Risk Management Robert Pakpahan said gateways for repatriated funds are obliged to periodically report their activities to the government. (Read: HSBC to be Tax Amnesty Gateway Despite Rumours of the Bank Refusing to be Involved).
This provision is incorporated into signed contracts on repatriated assets. “They must provide monthly reports,” Robert said after a seminar to promote the tax amnesty program and the development of economic policies in Indonesia in Jakarta, Tuesday (26/7).
Therefore, the Finance Ministry, in collaboration with the OJK, must have access to audit gateways from time to time. Three financial institutions have been selected as gateways for repatriated funds: banks, investment managers and securities.
Last week, four banks signed deals to become gateways. The four were Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), Bank Mandiri and Bank Central Asia (BCA).