Introduction
1. We,
the Government of the Republic of Indonesia and the Government
of Australia, had the honour to co-chair the Conference on Money
Laundering and Terrorist Financing in Bali, Indonesia, 17-18
December 2002. We as co-chairs view this conference as an important
regional initiative to complement and strengthen national, regional
and global efforts to prevent and combat money laundering and
terrorist financing.
2. Senior
Officials from 31 countries from the Asia-Pacific region participated
in the Conference, including Australia, Brunei Darussalam, Cambodia,
Canada, China, Cook Island, Fiji, France-New Caledonia, Indonesia,
Japan, Kiribati, Laos, Malaysia, Marshall Island, Myanmar, Nauru,
New Zealand, Niue, Papua New Guinea, The Philippines, Republic
of Korea, Samoa, Singapore, Solomon Islands, Thailand, Timor
Leste, Tonga, Tuvalu, The United State of America, Vanuatu and
Vietnam. Representatives from Jordan and Switzerland also attended
the Conference.
3. The
United Nations Counter-Terrorism Committee (UN-CTC), the United
Nations Office on Drugs and Crime (UNODC), the Financial Action
Task Force (FATF), the Egmont Group of Financial Intelligent
Units, the ASEAN Secretariat, the Asia/Pacific Group on Money
Laundering (APG), the Pacific Islands Forum, the Asia Development
Bank, the Islamic Development Bank, the European Commission,
the IMF, the World Bank, the World Customs Organisation, the
UNDP, as well representatives from the private sector and NGOs,
were also present at the Conference.
4. The
Minister for Foreign Affairs of the Republic of Indonesia, H.E.
Dr. N. Hassan Wirajuda, and the Minister for Justice and Customs
of Australia, Senator the Hon. Chris Ellison, opened the proceeding
on 17 December.
5. Participants
form across the region and beyond gathered together in Bali
to underline their collective global commitment to defeating
international terrorism, including by combating money laundering
and terrorist financing. The tragic events of 12 October 2002
have served to reinforce the importance of this Conference.
6. Participant
reaffirmed their steadfast commitment to preventing and combating
money laundering and terrorist financing. They underlined the
importance of furthering their common objectives through bilateral
cooperation, and further engagement with the international community
in strengthening national and regional capacity to fight this
scourge.
7. In
recognition of the translational nature of the problems posed
by money laundering and terrorist financing, participants also
reaffirmed their commitment to cooperate closely in combating
these crimes.
Recognition
of the growing problems of money laundering and terrorist financing
8. The
Conference recognised that combating the financial of terrorism
is an important part of the broader fight against terrorism.
9. The
Conference recognised that the dimensions of the problems of
money laundering and terrorist financing were growing in scale
and complexity worldwide, including in the Asia-Pacific region.
10. Participants
recognised the linkages between money laundering and terrorist
financing, as well as between money laundering and other related
criminal activities. They also recognised that many of the criminal
and terrorist networks engaged in money laundering and terrorist
financing activities were also involved in the trafficking of
illicit drugs, document fraud, arms and people smuggling and
other translational crimes. They further recognised the need
to further explore these linkages at the bilateral, sub-regional
and regional level.
11. Participants
raised concerns about the negative social and economic impact
of money laundering and terrorist financing (and related crimes)
on the region. There was a shared view that these phenomena
were creating significant political, economic, social and security
challenges. Participants noted the translational dimension of
these crimes, and that the perpetrators act without regard to
either national sovereignty or borders.
12. Participants
were concerned that money laundering and terrorist financing
could undermine the rule of law where such crimes take place,
thereby undermining the credibility of institutional frameworks
and the national integrity of states.
Meeting
international obligations
13. The
Conference recognised that there are a range of existing international
instruments, obligations, and processes that address money laundering
and terrorist financing issues, including:
-
UN Security Council Resolution (SCR) 1373
- UN
Convention on the Suppression of the Financing of Terrorism
- UN
Convention against Transnational Organised Crime
- FATF
40 Recommendations
- FATF
Special 8 Recommendations on Terrorist Financing
14. The
conference noted the commitment of states to implementing UN
SCR 1373 and the FATF 40+8 Recommendations. The Conference also
recognised the value of the Asia/Pacific Group Money Laundering
(APG) as a focus for collective regional action to facilitate
the adoption, implementation and enforcement of anti-money laundering
and counter-terrorist financing standards, and encouraged states
to join the APG.
15. The
conference also noted the commitments made by APEC, ASEAN, the
Pacific Islands Forum and other regional forums to further strengthen
cooperation in combating serious crime including money laundering,
terrorism and terrorist financing.
16. Participants
further noted the importance of universal adherence to the UN
Convention for the Suppression of the Financing of Terrorism
and the entry into force of the UN Convention against Transnational
Organised Crime, which will duly form strong bases to strengthen
international cooperation in preventing, criminalising, and
combating money laundering and terrorist financing.
17. Participants
further recognised the important activities and initiatives
undertaken by other UN entities in the field of money laundering
and terrorist financing such as the UN Counter Terrorism Committee
and UNODC. We considered that these initiatives contribute greatly
to the efforts of the international community to combat money
laundering and terrorist financing.
The need
for appropriate legislation and international cooperation
18. Participant
expressed the view that they should, within the framework of
their domestic laws and international obligations, enact appropriate
legislation to combat money laundering and terrorist financing.
This legislation will also provide a basis for enhanced international
and regional cooperation in combating these crimes.
19. The
Conference emphasised the difficulty for any individual State
to effectively counter money laundering and terrorist financing
without the support and effective cooperation of other States.
The Participants also emphasised their strong shared regional
interest and common purpose in forging closer cooperation to
combat these crimes. They expressed their firm commitment to
furthering existing instruments and efforts aimed at strengthening
States' capacity to respond, collectively and individually,
to the threats posed by money laundering and terrorist financing.
20. Participants
underlined the importance of developing national legislation
to criminalise money laundering and terrorist financing and
to allow states to target the proceeds of crimes, including
the tracing, freezing and confiscation of these proceeds.
21. Participants
also highlighted the importance of the provision of mutual legal
assistance, including through the development of national legislation,
in the investigation and prosecution of money laundering and
terrorist financing, and in the tracing, freezing and confiscation
of proceeds of crimes and of funds destined for terrorist sources.
Identification
of tools to combat money laundering and terrorist financing
and commitment to implement
22. Participants
underlined their commitment to develop practical cooperative
measures to prevent and combat money laundering and terrorist
financing activities.
23. Participants also underlined the importance
of further strengthening existing mechanisms in the Asia-Pacific
region to prevent, criminalise, and combat money laundering,
terrorist financing, and related criminal activities.
24. The
Conference also emphasised the need for the establishment and
enhancement of national and/or regional FIUs and their crucial
roles in combating money laundering and terrorist financing.
The Conference further recognised the importance of FIUs cooperating
with other relevant agencies, such as police forces, judiciaries
and financial institutions.
How to
implement the agreed solutions-partnership issues
25. Participants
acknowledged the primary responsibility of Governments to act
to address money laundering and terrorist financing. In this
regard, participants recognised the importance of cooperation
and partnership between public and private sectors in preventing
and combating these crimes.
26. The
Conference recognised the commitment of donor countries to assist
partner governments in fulfilling their international obligations
relating to money laundering and terrorist financing, including
through the provision of technical assistance.
27. The
participants underlined their commitment to strengthen cooperation
in combating money laundering and terrorist financing, and to
provide the resources required to establish the necessary identification,
prosecution and enforcement mechanisms and associated international
cooperation arrangements.
28. The
Conferences highlighted the severity of the problems posed by
money laundering and terrorist financing, and underlined the
urgent need for assistance to be provided in a manner which
faithfully reflects these realities. In particular, participants
recognised the value of direct. in-country assistance, such
as assistance in establishing FIUs and legislative drafting
assistance.
29. Participants
recognised the importance of effective coordination between
all parties concerned in the provision of assistance in this
field.
30. The
participants underlined the importance of assistance in strengthening
capacity and institutional building in the context of preventing
and combating money laundering and terrorist financing.
Appreciations
to the co-host countries
31. Participants
acknowledged with gratitude the efforts of the Governments of
Indonesia and Australia in co-hosting the conference.
Follow-up
32. We
the co-chairs will produce a final report on the Conference
for distribution to all participants and for use as a resource
in the future regional and international initiatives on combating
money laundering, terrorist financing and other related crimes.
33. Participants
considered that the results from this Conference will contribute
to existing and future anti-money laundering and terrorist financing
initiatives, and welcome any future initiatives by participating
countries to further the outcomes of this conferences.
