Thousands of Bank Accounts Linked to iGaming Blocked In Indonesia

Indonesia, similar to other countries in Asia, is taking proactive measures against gambling activities. Since gambling, both online and via retail outlets is prohibited, the country constantly fights the illegal gambling sector.

In the fight against unlawful gambling, Indonesia has taken a tough stance with the help of financial institutions, including banks and other providers operating in the financial vertical. This resulted in the freezing of thousands of bank accounts, suspected of engaging in online gambling.

Approximately 7,500 Bank Accounts Were Frozen

As announced by local media outlets, Juda Agung, the deputy governor of Bank Indonesia (BI), confirmed last week that the fight against unlawful gambling continues. He revealed that the central bank is prepared to freeze bank accounts of Indonesians who participate in online gambling with the help of both banks and other financial providers.

BI’s deputy governor revealed that there are some 7,500 bank accounts frozen so far. Those accounts, Agung said, are suspected of links to online gambling. Freezing the accounts means that their owners are no longer permitted to use them for any form of transaction or even withdraw their funds. It is unclear what would happen to the funds in the frozen accounts and whether or not those would be seized. Also, it remains to be confirmed how the owners of frozen accounts, who have not engaged in gambling activities, may receive access to their funds again.

The latest action of BI reaffirms the country’s intention to continue fighting unlawful gambling activities. At the same time, Agung confirmed that the government continues to raise awareness about the dangers of gambling through both social media and TV. The deputy governor also pointed to the importance of collaborating with financial institutions, reiterating that such establishments must have systems that can flag accounts suspected of engaging in online gambling, as well as other fraudulent transactions.

Indonesia Continues to Fight Unlawful Gambling

Only recently, Indonesia suspended 11 officials suspected of facilitating online gambling. The authorities suspect that government employees were likely linked to unlawful gambling and turned a blind eye to illegal online gambling operations. In that line of thought, gambling is a serious offense in the country and subject to fines and imprisonment of up to 10 years.

Last month, Indonesia confirmed it was able to successfully block 3.8 million online gambling websites in 14 months between July 2023 and October 9, 2024.