Indonesian central bank refuses to freeze terrorists' assets

Indonesia's central bank is refusing to comply with US demands to freeze assets linked to Osama bin Laden.

Bank Indonesia Governor Syahril Sabirin claims seizing the assets will contravene Indonesian law, the state Antara news agency reports.

"Bank Indonesia has no authority to freeze bank accounts," he said. "Bank Indonesia can do it (only) if a banking crime has been committed."

Other bank officials are saying the authorities must first have evidence bin Laden is responsible for the attacks on Washington and New York, before being able to act.

The US government has threatened to take action against nations which fail to freeze assets of suspected terrorists.

Indonesia, with few financial sector controls to curb endemic corruption, has long been regarded as a haven for money laundering.

The country is also the world's most populous Muslim nation and there is growing anti-American sentiment. About 6,000 people rallied outside the U.S. Embassy in Jakarta demanding an end to the U.S.-led assault on Afghanistan.