Indonesia's Parliament has passed a bill aimed at cracking down on terrorism by freezing suspicious financial transactions domestically and abroad.

The bill was approved Tuesday in a plenary session of the 550-seat house.

Deputy Speaker Priyo Budi Santoso, who presided over the session, noted the bill's importance in emphasizing Indonesia's position in the world's battle against terrorism.

It obliges banks and other financial service operators to report any suspicious transactions to the government agency that fights money laundering. The Financial Transaction Reports and Analysis Center then has the power to freeze and confiscate bank accounts and assets.

The bill will take effect after being signed by the president.

Indonesia has been battling terrorists since the 2002 bombings on the resort island of Bali that killed 202 people, mostly foreign tourists.