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Arrest of illegal Indonesian weapons supplier unmasks deep terrorism connections

Indonesian authorities arrest a key illegal weapons supplier, unveiling alarming links to terrorism networks. The apprehension raises concerns about broader national security threats and highlights vulnerabilities within state-owned entities.

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INDONESIA: Indonesian authorities have apprehended a weapons supplier connected to DE, an employee of the state-owned railway company PT Kereta Api Indonesia (KAI), who was captured earlier by Densus 88 Antiteror Polri (the Indonesian National Police’s Counterterrorism Unit).

DE was arrested due to his involvement in a terrorist network. During a search operation, Densus 88 discovered a cache of modified long-barreled airguns converted into firearms.

Alongside makeshift weapons, the team also seized hundreds of rounds of ammunition, magazines, and flags bearing the emblem of the Islamic State of Iraq and Syria (ISIS).

DE, who had sworn allegiance to the ISIS terrorist group, was apprehended not far from his residence on Jalan Raya Bulak Sentul, RT 07 RW 27, Harapan Jaya, North Bekasi, on Monday (14 Aug) afternoon.

The Metro Jaya Regional Police affirm that the firearms supplier to the terrorism suspect, Dananjaya Erbaning, an employee of KAI, is not from the police force. (Photo: INews)

Director of the Criminal Investigation Unit (Dirreskrimum) at the Jakarta Metropolitan Police, Commissioner General Hengki Haryadi, elucidated that their investigations had led to the identification of the supplier of DE’s weapons.

“They (DE and the weapons supplier) didn’t meet in person; their interactions were solely online using ever-changing account names,” revealed Hengki.

Earlier, the Spokesperson of the Indonesian Police’s Special Detachment (Densus) 88 Antiteror, Commissioner General Aswin Siregar, explained that DE was suspected of acquiring firearms and ammunition from an online marketplace or platform.

While not mentioning the platform’s name, Aswin indicated that this marketplace hosted sellers allegedly involved in weapon trading.

Aswin suggested that DE used this marketplace not only for arms deals but also as camouflage to conceal his weapon-related activities.

The apprehended supplier, identified as a recidivist involved in the illegal arms trade, has already been captured.

Hengki stated, “The supplier is a civilian, and we have arrested him. He is a recidivist; we have apprehended him before, and he was previously linked to illegal firearm distribution,” stated Hengki during a press conference at the Metro Jaya Regional Police Headquarters, Friday (18 Aug).

Hengki revealed that the police had also arrested firearm buyers, including all the evidence they had obtained from the supplier. However, among the arrested buyers, only DE was connected to the terrorism network.

“At this point, we have confiscated 18 modified firearms outside of those revealed by Densus in Bekasi recently,” he added.

However, Hengki did not disclose the names of those apprehended in the illegal arms trade case. He only mentioned that three police officers were arrested for their involvement.

Importantly, Hengki confirmed that these three officers, despite also purchasing illegal weapons from the Semarang factory, were not connected to the terrorism suspect DE.

The three police officers involved in purchasing illegal weapons were identified as Chief Police Brigadier (Bripka) Reynaldi Prakoso from the General Crime Investigation Directorate of the Jakarta Metropolitan Police, Chief Police Brigadier (Bripka) Syarif Mukhsin from the Renmin Samapta Unit of the Cirebon City Police, and Police Inspector First Class (Iptu) Muhamad Yudi Saputra, Head of the Criminal Investigation Unit at the North Bekasi Police Sector.

Reynaldi and Yudi have been placed in special detention facilities, while Syarif’s case is being handled by the West Java Regional Police.

Hengki further added that, apart from the supplier, the Jakarta Metropolitan Police’s Criminal Investigation Directorate had arrested individuals suspected of converting airguns into firearms.

They also conducted a search at a factory involved in modifying airguns into weapons. Hengki explained that their investigation into the circulation of homemade firearms in the community had begun before Densus 88 arrested DE in Bekasi.

“Densus 88 and the Jakarta Metropolitan Police have coordinated in unveiling this case,” Hengki noted.

In response to these developments, the Financial Transaction Reports and Analysis Center (PPATK) announced the freezing of the bank accounts of the terrorism suspect, an employee of PT KAI, apprehended by Densus 88 in Bekasi, West Java.

The police have released an image of the terrorism suspect with the initials DE, an employee of PT Kereta Api Indonesia (KAI), who has pledged support for the ISIS terrorist group. (Source: KOMPAS.com)

“The bank accounts of the PT KAI employee who is a terrorism suspect have been blocked,” stated Ivan Yustiavandana, Head of PPATK, revealing that the transactions involved billions of Indonesian rupiah.

Ivan elaborated that PPATK was closely collaborating with Densus 88 in support of the ongoing analysis process. “To support our analysis efforts, we are continuing to work with Densus 88,” Ivan concluded.

The recent involvement of an employee of PT Kereta Api Indonesia (KAI) in a terrorism case has raised concerns about the state-owned enterprise’s credibility.

This issue prompted comments from the Coordinating Minister for Political, Legal, and Security Affairs (Menko Polhukam), Mahfud MD.

According to Mahfud, PT KAI may have faltered in overseeing its employees. “It’s possible (that they failed or were negligent in supervision).

From an ideological perspective, maybe. From a professional and management perspective, things might be fine. But ideologically, there seems to be a breach,” Mahfud stated on Friday (18 Aug).

Mahfud, however, declined to explain why PT KAI employees were exposed to radical ideologies despite cooperating with the National Counterterrorism Agency (BNPT).

“I don’t know, ask them. Why are you asking me?” he responded.

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Crime

S$3b money laundering convicts and Alice Guo charged with human trafficking in Philippines

Zhang Ruijin and Lin Baoying, convicted in Singapore’s S$3 billion money laundering case, have been charged in the Philippines for human trafficking, along with former mayor Alice Guo. The group is accused of operating a scam centre involving hundreds of workers in Tarlac province.

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MANILA, PHILIPPINES: Two Fujian-born individuals previously convicted in Singapore’s S$3 billion money laundering case, Zhang Ruijin and Lin Baoying, have been named among 14 people charged with human trafficking in the Philippines.

The charges were filed by the Department of Justice on 17 September, involving a major scam operation in Tarlac province.

Zhang and Lin, along with former Bamban mayor Alice Guo, are accused of forcing hundreds of people from various nationalities into working for a scam centre located in Bamban, Tarlac.

The site was raided in March 2024, leading to the discovery of 432 Chinese nationals, 371 Filipinos, and other individuals from Vietnam, Malaysia, Taiwan, Indonesia, and Rwanda.

Guo, who was stripped of her mayorship in August, was arrested in Indonesia in September following her escape from the Philippines in July during an investigation into her alleged involvement in Chinese criminal syndicates.

The scam operation was run on land owned by Baofu Land Development, a company founded in 2019 by Guo, Zhang, Lin, Cypriot national Huang Zhiyang, and Philippine national Rachel Joan Malonzo Carreon.

All five individuals are among those facing charges of “qualified human trafficking,” a non-bailable offence which typically carries a penalty of life imprisonment.

Qualified trafficking, as defined under Philippine law, involves cases where syndicates, slavery, or forced labour are present.

Zhang and Lin were sentenced to 15 months in prison in Singapore after pleading guilty to money laundering and forgery charges.

They were deported to Cambodia in June after completing their sentences.

Guo, who had evaded Philippine authorities by hiding in Singapore for a month, was extradited back to the Philippines on 9 September and is now facing additional charges, including graft-related offences, tax fraud, and laundering criminal proceeds amounting to 100 million pesos (S$2.3 million).

Guo, whose birth name is allegedly Guo Hua Ping, is also under investigation for fabricating her nationality to qualify for public office, a role restricted to Philippine citizens.

She is accused of falsifying her birth records to conceal her Chinese nationality.

The case has drawn further attention due to the involvement of Huang Zhiyang, reported to be the head of illegal Philippine Offshore Gaming Operators (Pogos), which have been linked to human trafficking and scam operations.

Pogos, while licensed by the Philippine Amusement and Gaming Corporation (PAGCOR), have been criticized for exploiting workers and being a front for criminal activities.

In 2022, Pogos contributed 53.1 billion pesos (S$1.3 billion) to the Philippine economy, but lawmakers continue to express concerns about their operations.

Zhang and Lin’s current whereabouts remain unclear following their deportation.

Cambodian authorities reported Zhang was deported again on 16 July, but the destination country was not disclosed.

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Crime

Two arrested in US$230 million cryptocurrency theft and laundering scheme

Two men, including a Singaporean citizen, were arrested Wednesday night and charged in U.S. District Courts in Florida and California with stealing and laundering over US$230 million in cryptocurrency. The FBI raided a luxury Miami home linked to one suspect, who allegedly defrauded a Washington, D.C. victim.

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Malone Lam (Broward Sheriff’s Office), Luxury home at 1201 NE 83rd St (Miami Herald)

UNITED STATES: On Thursday (19 Sept), Malone Lam, 20, of Miami, FL, and Jeandiel Serrano, 21, of Los Angeles, CA, were charged with conspiracy to steal and launder over US$230 million in cryptocurrency from a Washington, D.C. victim.

Both suspects were arrested on Wednesday night and charged in U.S. District Courts in Florida and California on Thursday.

Lam, a Singaporean citizen known online as “Anne Hathaway” and “$$$,” and Serrano, who uses the aliases “VersaceGod” and “@SkidStar,” were charged with conspiracy to commit wire fraud and money laundering.

They are accused of using their online identities to fraudulently obtain over 4,100 Bitcoin, valued at more than US$230 million, from a Washington, D.C. victim, according to a press release by the U.S. Department of Justice.

According to the Miami Herald, the FBI raided a luxury waterfront home in Miami, FL, linked to Lam as part of the investigation.

The 10-bedroom, 10-bath home, listed on Zillow for US$11.5 million, was reportedly rented out to celebrities and musicians. Agents arrested Lam in Miami, while Serrano was simultaneously apprehended in Los Angeles. Neighbours described seeing Maseratis and Lamborghinis frequently parked at the Miami residence.

The indictment alleges that since at least August 2024, Lam and Serrano, along with unnamed accomplices, used sophisticated methods to gain access to victims’ cryptocurrency accounts.

The stolen funds were laundered through cryptocurrency exchanges, “peel chains,” pass-through wallets, and virtual private networks (VPNs) to obscure their origins.

The suspects allegedly spent the proceeds on luxury goods, including cars, jewellery, and rental properties in both Miami and Los Angeles.

The raid, which took place on Wednesday, was part of a grand jury indictment unsealed the next day. Agents were seen removing high-end vehicles from the property, and damage to the front gate was visible following the operation.

Local police provided support to the FBI during the raid.

The arrests were announced by U.S. Attorney Matthew M. Graves, FBI Acting Special Agent in Charge David Geist of the Washington Field Office, and Executive Special Agent in Charge Kareem A. Carter of the IRS-Criminal Investigation (IRS-CI) Washington, D.C. Field Office.

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