Indonesian Banks Ordered to Block 25,912 Accounts Linked to Online Gambling

As part of efforts to combat illegal betting, Indonesia’s Financial Services Authority (OJK) has issued a directive instructing banks to freeze 25,912 accounts associated with unlawful online gambling activities.

The OJK has also requested that financial institutions verify account holders’ identities through the country’s national identification system.

Previously, the Financial Transaction Reports and Analysis Center (PPATK) implemented a policy to block bank accounts that remain unused for more than three months. In July, authorities announced the freezing of more than 140,000 inactive accounts holding a total of IDR 428.61 billion. Many of these accounts were linked to illegal money laundering operations.

In 2023, the PPATK also reported discovering 12,097 accounts and 7,577 digital wallets potentially used for online casinos, which had large incoming transfers but no outgoing transactions. Collectively, these accounts held IDR 3 trillion (approximately USD 355 million).

Banks have been instructed to enhance their systems for detecting cybercrime and fraudulent financial activities related to gambling.

Minister of Social Affairs Saifullah Yusuf warned that social assistance recipients might be using these funds for gambling purposes. “These beneficiaries must be educated on how to use the assistance appropriately, not for gambling or other improper purposes,” he stated.

The Ministry of Social Affairs has already revoked assistance from 230,000 individuals due to misuse of funds, and more than 300,000 additional cases are currently under investigation for suspected violations.