The Indonesian Financial Transaction Reports and Analysis Center (PPATK) has recently implemented freezing measures on "dormant accounts" (inactive accounts) in several domestic banks. The head of the agency, Ivan Yustiavandana, stated that this action is an important part of combating online gambling crimes, aimed at blocking illegal fund flows and protecting the public from financial crimes.
PPATK monitoring has found that online gambling groups frequently use dormant accounts for "money mule" transactions. These accounts, being long inactive and easily overlooked, are exploited by criminal gangs who steal or purchase account information to disperse gambling funds and evade regulation. In 2023 alone, PPATK has flagged over 1.2 million suspicious accounts related to illegal gambling.
Implemented Measures
Automatic Freezing Mechanism: Accounts with no transactions for 12 consecutive months and a balance below the bank's minimum requirement are frozen.
Layered Verification: Account holders must complete identity verification through the bank's APP or offline branches to unfreeze their accounts.
Inter-agency Collaboration: In cooperation with the Ministry of Communications, gambling payment gateways are shut down, with 3,200 illegal gambling websites already blocked in 2024.
Controversy and Response
Some citizens complain about the cumbersome unfreezing process. Yustiavandana explains, "We must strike a balance between security and convenience. The risk of dormant accounts being misused is real, with 17 trillion Indonesian Rupiah (approximately 800 million USD) in gambling funds laundered through such accounts in 2023." Financial expert Agus Santoso suggests banks optimize the verification process, such as adding biometric unfreezing features.
PPATK will launch an "Account Health Rating" system, using AI to analyze transaction patterns and predict risks. Meanwhile, discussions with the central bank to revise the "Payment System Regulations" are underway, proposing that electronic wallet platforms implement similar controls on dormant accounts.
