<![CDATA[Money changers, formally classified as Non-Bank Foreign Exchange Trading Businesses (KUPVA Non-Bank), play a strategic role in Indonesia’s financial system by facilitating foreign exchange transactions and cross-border economic activities. Nevertheless, the cash-intensive nature of money changer operations, flexible transaction values, and potential cross-jurisdictional exposure render this sector vulnerable to misuse for money laundering offenses. This study examines the role of money changers in preventing money laundering by analyzing the legal framework governing KUPVA Non-Bank within Indonesia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT). The discussion focuses on identifying vulnerabilities and potential money laundering typologies associated with money changer activities, as well as assessing the effectiveness of AML/CFT compliance obligations implemented by operators. The analysis evaluates the consistency of national legal norms with risk-based supervision principles and the international standards established by the Financial Action Task Force (FATF). The findings indicate that although the AML/CFT regulatory framework applicable to money changers is relatively comprehensive, its practical effectiveness remains constrained by compliance challenges, suboptimal suspicious transaction reporting, and supervisory capacity limitations. Accordingly, strengthening regulatory enforcement, supervisory mechanisms, and compliance governance is essential to enhance the role of money changers as a key component in preventing money laundering.]]>
