Consultant
USAID CEGAH, Jakarta, Indonesia
Supporting the Financial Services Authority (OJK) in DevelopingSimple
Assessment Tool
for OJK Auditors to Prevent Money Laundering andTerrorism Financing in the
Indonesian Securities Sector
Type of Contract : Individual Consultant
Duration of Contract : 51 days
Working Period :March – October, 2020
RT : 45
BACKGROUND
The National Risk Assessment(NRA) of 2015 on Money Laundering, updated in 2019,
listed crimes in the capitalmarkets as one of the top five predicate crimes of
money laundering.
The Indonesian capital marketsfall under three supervisory working units of the
Financial Services Authority(Otoritas Jasa Keuangan – OJK): the Directorate of
Securities Company Monitoring(Direktorat Pengawasan Lembaga Efek – DPLE), with
eight auditors overseeing105 financial service providers; the Directorate of
Investment Management (DirektoratPengelolaan Investasi – DPIV), with seven
auditors overseeing 92 financialservice providers; and the Directorate
Supporting Capital Market Institutionsand Professions (Direktorat Penunjang
Lembaga dan Profesi Pasar Modal –DLPM), with 3 auditors overseeing 23 financial
service providers.
Apart from conducting auditson implementation of Anti-Money Laundering (AML)
and Countering Terrorism Financing(CTF) programs, OJK auditors also audit other
focus areas and perform additionaltasks (such as complaint handling from
customers), resulting in a sub-optimal numberof securities companies being
audited each year. Furthermore, the auditors alsohave difficulties due to a
limited amount of time allocated to audits, of only3-5 working days. Another
difficulty faced by auditors is identifying andverifying customer on-boarding
Money laundering schemes in thecapital markets are often more complex than in
the banking industry –placing illicitmoney into a bank account and moving it
around the financial system before beingwithdrawn and converted into luxury
goods – as unlike banks, most brokers donot accept cash. The capital markets
offer a variety of products and many transactionsare made electronically and
across international borders. These factors make itmore complex to identify
money laundering and terrorism financing in capitalmarkets, while at the same
time the capital markets are seen as an opportunity forcriminals to launder
illicit money as well as to generate it within the capitalmarkets
themselves.[1]
In the previous year, USAIDCEGAH assisted OJK in developing a simple tool to
help OJK’s auditors to detectmisuse of bank accounts at commercial banks for
money laundering and terrorismfinancing. To date, the tool has been shared in
three trainings by OJK with itscommercial bank auditors, who face issues
similar to those faced by auditors ofthe capital markets. This year, USAID
CEGAH plans to continue its support for OJKby seeking an individual consultant
to perform and achieve the following:
SCOPE OF WORK:
A. Objectives:
Preventabuse of capital markets for money laundering and/or terrorism financing
by developinga detection tool for OJK’s capital market auditors to assess
implementation ofAML and CTF programs within capital market.
B. Activities:
· 1 day:
Meet with OJK to discuss the issues faced by its capitalmarket auditors in
detecting money
laundering and terrorism financing.
· 2days:
Review regulations related to money laundering andterrorism financing,
particularly those related to capital markets.
· 7 days:
Review the current assessment tool to seewhat improvements are needed.
· 1day:
Present the assessment result before OJK and USAIDCEGAH to obtained input and
suggestions.
· 20days:
Develop the new assessment tool, either by improvingthe current tool or
developing a new one.
· 1day:
Present the results to OJK and USAIDCEGAH to obtain input or suggestions, as
well as approval of the tool.
· 5days:
Prepare training materials on the newtool to be conveyed to the auditors,
including pre- and post-tests to measure participants’increase of knowledge.
· 2days:
Provide training to auditor team leaderson the tool.
· 1day:
Adjust the tool based on input obtainedfrom the training (if any).
· 1 day:
Present final results to the Head of the Anti-MoneyLaundering and Countering
Terrorism Financing Group of OJK, based on inputobtained during the training.
C. Qualifications
- Experience in the following fields: anti-corruption; anti-money
laundering; countering terrorism financing; corporate governance; corporate
crimes; tax evasion; beneficial ownership.
- Experienced in the banking and capital market sectors.
D. Deliverables:
1. The consultant’s report, to be submittedin English and Indonesian,
including analysis of results of training pre- and post-tests;
2. A tool to detect ML and/or TF for OJK’s capitalmarkets auditors, approved
by OJK and USAID CEGAH;
3. Presentationmaterials used in the training.
Interested candidates must send their CV to info@xxxxxxxxxxxxx no later than
March 20, 2020.
Only shortlisted candidates will be contacted. No phone calls, please.
MSI is anEEO/AA/ADA Veterans Employer
[1]FATF Report Money Laundering and Terrorist Financing in the SecuritiesSector
https://www.fatf-gafi.org/media/fatf/documents/reports/ML%20and%20TF%20in%20the%20Securities%20Sector.pdf
