The Jakarta Post, Jakarta | Fri, 07/23/2010 9:57 AM

The National Police’s monopoly on investigating money laundering allegations may end if the House of Representatives approves an amendment of existing law.

A bill proposing an amendment to the law on money laundering is being discussed by a House

working committee, which is expected to finalize a change to the law this year.

The police’s investigative monopoly on money laundering allegations is widely regarded as the main

 factor behind the low number of prosecutions.

The Financial Transaction Reports and Analysis Centre (PPATK) reported recently there were 55,259 suspicious transactions in banks and other financial institutions in the first six months of 2010 alone — an increase from 46,559 transactions recorded in 2009.

Indonesia Corruption Watch (ICW) said that only 8 percent of suspicious transactions that the PPATK reported the police were followed up by investigators.

ICW legal researcher Febri Diansyah said the police’s sole authority to investigate money laundering offenses was hindering prosecution.

A proposed amendment to article 79 of the law on money laundering stipulates that the right to launch an investigation based on PPATK reports should be given to institutions related to the sources of suspicious money.

The Corruption Eradication Commission (KPK), for example, would have the authority to investigate PPATK reports of money laundering connected to corruption while the Forestry Ministry’s civil investigators would investigate money laundering allegations stemming from illegal logging.

Gayus Lumbuun of the Indonesian Democratic Party of Struggle (PDI-P) said on Thursday that under the bill civil investigators from all ministries would have the right to investigate and seek evidence of alleged money laundering.

“The National Police will still coordinate those civil investiga-tors,” he said.

Gayus said that civil investigators would be more effective because they understood the subtleties of their respective fields.

Article 82 of the proposed amendment stipulates that the PPATK may ask criminal investigators to create an interagency taskforce comprised of PPATK representatives, investigators and prosecutors to coordinate investigations.

Benny K. Harman of the Democratic Party said he wanted the amendment to grant the PPATK the right to investigate and to prosecute money launderers. “We want the PPATK to be a body like the KPK with the authority to investigate and prosecute,” he said.

Legislators also agreed to grant the PPATK authority to compel financial institutions block suspicious transactions, accounts whose ownership or origins were unclear or with unclear owners and accounts connected with alleged criminal activity.