In Indonesia, names like Budi Santoso, Siti Aisyah, or Ahmad Fauzi are extremely common. But what if one of these names appears in a breaking news headline about corruption, money laundering, or terrorism funding? Businesses dealing with digital transactions face a real challenge: not every “Budi Santoso” is a criminal, but one mistake could put your company at risk. This is where Adverse Media and PEP (Politically Exposed Person) screening become crucial.
Why Adverse Media Matters in Risk Management
Adverse Media refers to credible negative news coverage involving individuals or entities. In 2023, several executives from a major Indonesian industry were convicted for their roles in a bribery and corruption ring linked to export permits. The case revealed how influential figures — many with very common Indonesian surnames — conspired with officials to bypass regulations, leading to high-profile trials and prison sentences.
Without proper screening, a payment aggregator or financial institution could have unknowingly processed funds connected to such individuals, risking regulatory penalties and reputational damage. Screening for adverse media helps companies spot red flags before transactions happen, protecting both the business and its customers.
PEP Screening: Identifying High-Risk Individuals
A PEP is someone with a prominent public role — like a government official, political party leader, or high-ranking military officer. In 2020, Indonesia’s Corruption Eradication Commission (KPK) exposed a PEP involved in embezzlement through digital payment channels. Because PEPs are more exposed to bribery and corruption risks, businesses need to treat these profiles with extra caution. PEP screening ensures you can identify these individuals and apply enhanced due diligence.
The Digital Transaction Boom and Its Risks
Indonesia’s shift toward cashless payments has accelerated, especially with QRIS (Quick Response Code Indonesian Standard)—a widely adopted, real-time QR payment system developed by Bank Indonesia. But with convenience comes risk. In May 2025, authorities uncovered a sophisticated money-laundering ring that exploited QRIS and cryptocurrency to move IDR 530 billion (about US$32 million) in gambling proceeds through thousands of bank accounts. This underscores how even ubiquitous digital payment systems, if unchecked, can become conduits for illicit funds.
How the Case Illustrates Vulnerability
This case illustrates how common digital platforms or services—like QR code systems, payment apps, or fintech networks—could be co-opted by criminals. A system like AML Watchlist enables real-time screening for adverse media hits and PEP status, significantly reducing your exposure to these kinds of schemes. It’s not just about compliance—it’s risk mitigation.
PEP Screening: Knowing When to Apply Extra Diligence
PEPs—people in influential roles like government officials or party leaders—are inherently higher-risk due to their access to power and influence. Indonesia’s own experiences show that corruption can arise through seemingly legitimate channels, including exports and trade. Identifying PEPs allows companies to apply enhanced due diligence (EDD), making sure they handle high-risk profiles with the care they require.
How AML Watchlist Protects Your Business
AML Watchlist offers AI-powered name matching and real-time screening against global adverse media and PEP lists. It helps ensure that similarly named individuals—whether innocuous or notorious—are accurately assessed. Whether you’re in fintech, banking, payment aggregation, or e-commerce, this technology acts as both a compliance tool and a proactive shield against reputational, legal, and financial damage.
Closing Thoughts: Prevention Beats Remediation
In an era of rapid digital growth, skipping proper screening is a risk you don’t want to take. Common names may mask extraordinary threats—and a single oversight can damage trust, invite penalties, and erode brand integrity. With AML Watchlist, you can process transactions with confidence—knowing you’ve done your due diligence.
Adverse Media and PEP screening Indonesia AML Watchlist
Last modified: August 18, 2025
