Regulation of the Commodity Futures Trading Regulatory Agency Number 8 of 2023

REGULATION OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER 8 OF 2023 CONCERNING AMENDMENT TO REGULATION OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER 5 OF 2023 CONCERNING GUIDELINES FOR PREVENTING THE FINANCING OF PROLIFERATION OF WEAPONS OF MASS DESTRUCTION BY FUTURES BROKERS, CANDIDATE PHYSICAL CRYPTO ASSET TRADERS, AND PHYSICAL CRYPTO ASSET TRADERS BY THE GRACE OF THE MOST HIGH GOD HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY REPUBLIC OF INDONESIA,

Considering:
a. that in the context of efforts to prevent the Financing of Proliferation of Weapons of Mass Destruction, Indonesia has a commitment to support the inclusion of the identity of persons or corporations in the Financing of Proliferation of Weapons of Mass Destruction List, and the immediate blocking of funds belonging to persons or corporations listed in the Financing of Proliferation of Weapons of Mass Destruction List, as previously regulated in Regulation of the Commodity Futures Trading Regulatory Agency Number 5 of 2023 Concerning Guidelines for Preventing the Financing of Proliferation of Weapons of Mass Destruction by Futures Brokers, Candidate Physical Crypto Asset Traders, and Physical Crypto Asset Traders;

b. that in the context of implementing follow-up actions from the results of the meeting between the Indonesian delegation and the Contact Group of the Mutual Evaluation Review (MER) of the Financial Action Task Force (FATF), which mandates that every Regulation related to the Financing of Proliferation of Weapons of Mass Destruction must regulate the obligation to block, prohibit the provision of funds, and its exceptions to align with the second amendment to the Joint Regulation of the Minister of Foreign Affairs of the Republic of Indonesia, Head of the National Police of the Republic of Indonesia, Head of the Financial Transaction Reports and Analysis Center, and Head of the Nuclear Energy Regulatory Agency concerning the Inclusion of the Identity of Persons and Corporations in the Financing of Proliferation of Weapons of Mass Destruction List and the Immediate Blocking of Funds Belonging to Persons or Corporations Listed in the Financing of Proliferation of Weapons of Mass Destruction List;

c. that based on the considerations referred to in letters a and b, it is necessary to establish an Amendment to Regulation of the Commodity Futures Trading Regulatory Agency Number 5 of 2023 Concerning Guidelines for Preventing the Financing of Proliferation of Weapons of Mass Destruction by Futures Brokers, Candidate Physical Crypto Asset Traders, and Physical Crypto Asset Traders;

Recalling:

1. Law Number 32 of 1997 concerning Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 1997 Number 93, Supplement to the State Gazette of the Republic of Indonesia Number 3720) as amended by Law Number 10 of 2011 concerning Amendment to Law Number 32 of 1997 concerning Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 2011 Number 79, Supplement to the State Gazette of the Republic of Indonesia Number 5232);
2. Law Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering Crimes (State Gazette of the Republic of Indonesia Year 2010 Number 122, Supplement to the State Gazette of the Republic of Indonesia Number 5164);
3. Law Number 9 of 2013 concerning the Prevention and Eradication of Terrorism Financing Crimes (State Gazette of the Republic of Indonesia Year 2013 Number 50, Supplement to the State Gazette of the Republic of Indonesia Number 5406);
4. Government Regulation Number 49 of 2014 concerning the Implementation of Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 2014 Number 143, Supplement to the State Gazette of the Republic of Indonesia Number 5548);
5. Presidential Regulation Number 68 of 2019 concerning the Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2019 Number 203) as amended by Presidential Regulation Number 32 of 2021 Concerning Amendment to Presidential Regulation Number 68 of 2019 Concerning the Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2021 Number 106);
6. Presidential Regulation Number 11 of 2022 concerning the Ministry of Trade (State Gazette of the Republic of Indonesia Year 2022 Number 19);
7. Minister of Trade Regulation Number 29 of 2022 concerning the Organization and Work Structure of the Ministry of Trade (State News of the Republic of Indonesia Year 2022 Number 492);
8. Joint Regulation of the Minister of Foreign Affairs of the Republic of Indonesia, Head of the National Police of the Republic of Indonesia, Head of the Financial Transaction Reports and Analysis Center, and Head of the Nuclear Energy Regulatory Agency concerning the Inclusion of the Identity of Persons and Corporations in the Financing of Proliferation of Weapons of Mass Destruction List and the Immediate Blocking of Funds Belonging to Persons or Corporations Listed in the Financing of Proliferation of Weapons of Mass Destruction List;
9. Regulation of the Commodity Futures Trading Regulatory Agency Number 5 of 2023 Concerning Guidelines for Preventing the Financing of Proliferation of Weapons of Mass Destruction by Futures Brokers, Candidate Physical Crypto Asset Traders, and Physical Crypto Asset Traders;
10. Regulation of the Commodity Futures Trading Regulatory Agency Number 10 of 2017 Concerning Guidelines for the Implementation of Immediate Blocking by Futures Brokers of Funds Owned and Controlled by Persons or Corporations Whose Identity is Listed in the Financing of Proliferation of Weapons of Mass Destruction List;

DECIDES:
To establish:
REGULATION OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY CONCERNING AMENDMENT TO REGULATION OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER 5 OF 2023 CONCERNING GUIDELINES FOR PREVENTING THE FINANCING OF PROLIFERATION OF WEAPONS OF MASS DESTRUCTION BY FUTURES BROKERS, CANDIDATE PHYSICAL CRYPTO ASSET TRADERS, AND PHYSICAL CRYPTO ASSET TRADERS.

Article I
Several provisions in the Regulation of the Commodity Futures Trading Regulatory Agency Number 5 of 2023 Concerning Guidelines for Preventing the Financing of Proliferation of Weapons of Mass Destruction by Futures Brokers, Candidate Physical Crypto Asset Traders, and Physical Crypto Asset Traders, are amended as follows:

1. Between Article 20 and Article 21, 1 (one) Article is inserted, namely Article 20A, which reads as follows:

Article 20A
Futures Brokers, Candidate Physical Crypto Asset Traders, and Physical Crypto Asset Traders are prohibited from providing, giving, or lending Funds to or for the benefit of persons or corporations based on the Financing of Proliferation of Weapons of Mass Destruction List (DPPSPM) issued by the Financial Transaction Reports and Analysis Center (PPATK).

2. Between Article 21 and Article 22, 1 (one) Article is inserted, namely Article 21A, which reads as follows:

Article 21A
(1) Individuals (natural persons) and Corporations (legal persons) are required to immediately block all Funds owned or controlled, directly or indirectly, by persons or corporations based on the Financing of Proliferation of Weapons of Mass Destruction List (DPPSPM) issued by PPATK, including Funds originating from Funds owned or controlled by persons or corporations based on the DPPSPM, without the need for prior notification to the said persons or corporations. (2) Every Indonesian citizen or any other person or corporation located in Indonesia is required to prevent and is prohibited from providing Funds, intended for or for the benefit of persons or corporations based on the DPPSPM issued by PPATK, including Funds originating from Funds owned or controlled by persons or corporations based on the DPPSPM. (3) Exceptions to the prevention and prohibition referred to in paragraph (2) are carried out if prior permission, authorization, or notification has been obtained in accordance with applicable laws and regulations, as well as international conventions and standards, including United Nations Security Council resolutions concerning the prevention and eradication of the Financing of Proliferation of Weapons of Mass Destruction (PPSPM).

3. Between Article 26 and Article 27, 2 (two) Articles are inserted, namely Article 26A and 26B, which read as follows:

Article 26A
(1) Bona fide third parties have the right to receive protection over Funds that are subject to immediate blocking as referred to in Article 22 paragraph (1), Article 21A paragraph (1) and (2).
(2) Provisions regarding exceptions to blocking as regulated in this Regulation apply mutatis mutandis to the protection of bona fide third parties as referred to in paragraph (1).
(3) PPATK and related agencies may determine other forms of protection for bona fide third parties as referred to in paragraph (1).

Article 26B
(1) The implementation of immediate blocking may be exempted for part of the Funds to meet the needs of persons or corporations, including:
a. expenses for daily food for persons listed in the DPPSPM, their families, and dependents; b. medical treatment or care costs for persons listed, along with their families;
c. children's education costs;
d. housing rent costs; e. mortgage/lien costs; f. fiduciary costs; g. insurance premium costs; h. tax payments;
i. public service costs;
j. costs related to the provision of legal services; k. all payments related to obligations to third parties arising from agreements that occurred before the inclusion of the identity of persons or corporations in the DPPSPM; and/or
l. routine administrative costs for maintaining blocked Funds.

(2) Payments related to obligations to third parties as referred to in paragraph (1) letter k are excluded from:
a. agreements related to materials, equipment, objects, technology, assistance, training, financial assistance, investments, activities, or broker services, or other objects/activities related to the Proliferation of Weapons of Mass Destruction as established by the United Nations; and b. payments arising from such agreements that will be received, directly or indirectly, by persons or corporations whose identity is listed in the DPPSPM.

(3) In addition to the immediate blocking exceptions as referred to in paragraph (1), the implementation of immediate blocking is also exempted for Funds included in extraordinary expenses established by the United Nations.

(4) The requirements and procedures for implementing the immediate blocking exceptions as referred to in paragraph (1) and paragraph (3) refer to standards, conventions, and resolutions issued by the United Nations.

(5) Requests for immediate blocking exceptions as referred to in paragraph (1) and paragraph (3) are submitted by persons or corporations having a direct interest in the blocked Funds.

(6) Requests for immediate blocking exceptions as referred to in paragraph (1) and paragraph (3) are submitted to PPATK.

(7) Requests for immediate blocking exceptions as referred to in paragraph (1) and paragraph (3) are filed and considered by the United Nations.

(8) In the event that PPATK rejects the request for immediate blocking exception, the applicant may file an objection to the Central Jakarta District Court.

Article II
This Regulation shall come into force on the date of establishment.

Established in Jakarta on 26 September 2023
HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY REPUBLIC OF INDONESIA, Signed, DIDID NOORDIATMOKO

A copy in accordance with the original
COMMODITY FUTURES TRADING REGULATORY AGENCY
Head of the Legal and Legislative Affairs Bureau, [Signature]