The rapid development of banking system, especially with respect to information and technology, has also meant that the crimes of money laundering and terrorist financing has become more sophisticated and an increasing risk. The existing regulatory framework, mainly the principle of “know your customer”, is considered insufficient to tackle the problems associated with these two criminal activities, and therefore Bank Indonesia has issued Regulation No. 11/28/PBI/2009.
The regulation simply requires all Banks to implement an anti-money laundering program and a prevention of terrorist financing program. These programs must meet accepted international standards as introduced by the Financial Action Task Force (FATF), an inter-governmental body whose purpose is to combat money laundering and terrorist financing. The FATF recommendation, “recommendation 40 + 9 FATF,” has been partly included in the regulation and is listed in the Elucidation.
Article 3(2) of the regulation sets out at least 5 measures with respect to the implementation of the anti-money laundering and prevention of terrorist financing programs, these are as follow:
-
The obligations of any Banks’ Director(s) and its Board of Commissioners to ensure the fulfillment of the regulation’s provisions;
-
Certain policies and procedures to prevent both of the noted unlawful acts;
-
Ensure that there is effective internal control systems in every Bank to supervise the implementation of the anti-money laundering and prevention of terrorist financing programs;
-
Establish an information management system that is capable of identifying, analyzing, overseeing, and producing reports on any of the transactions conducted by a bank customer; and,
-
The screening of every human resource in the recruitment of any new employees, and then training every employee in the applicable anti-money laundering and prevention of terrorist financing programs.
The regulation also stipulates that Banks are to report to BI pursuant to Article 45. Furthermore, Banks also have to report to the Financial Transaction Reports and AnalysisCenter (Pusat Pelaporan dan Analisis Transaksi Keuangan) pursuant to Article 46.
Failure to comply with the provisions of the regulation will subject the relevant party to sanctions as provided under Chapter X.
The regulation provides that every bank that has Guidelines on Know Your Customer in place, must then ensure that those guidelines are in compliance with the provisions of this regulation within 12 months of the date of enactment of this regulation.
The regulation has been in force since 1 July 2009.
The rapid development of banking system, especially with respect to information and technology, has also meant that the crimes of money laundering and terrorist financing has become more sophisticated and an increasing risk. The existing regulatory framework, mainly the principle of “know your customer”, is considered insufficient to tackle the problems associated with these two criminal activities, and therefore Bank Indonesia has issued Regulation No. 11/28/PBI/2009.
The regulation simply requires all Banks to implement an anti-money laundering program and a prevention of terrorist financing program. These programs must meet accepted international standards as introduced by the Financial Action Task Force (FATF), an inter-governmental body whose purpose is to combat money laundering and terrorist financing. The FATF recommendation, “recommendation 40 + 9 FATF,” has been partly included in the regulation and is listed in the Elucidation.
Article 3(2) of the regulation sets out at least 5 measures with respect to the implementation of the anti-money laundering and prevention of terrorist financing programs, these are as follow:
-
The obligations of any Banks’ Director(s) and its Board of Commissioners to ensure the fulfillment of the regulation’s provisions;
-
Certain policies and procedures to prevent both of the noted unlawful acts;
-
Ensure that there is effective internal control systems in every Bank to supervise the implementation of the anti-money laundering and prevention of terrorist financing programs;
-
Establish an information management system that is capable of identifying, analyzing, overseeing, and producing reports on any of the transactions conducted by a bank customer; and,
-
The screening of every human resource in the recruitment of any new employees, and then training every employee in the applicable anti-money laundering and prevention of terrorist financing programs.
The regulation also stipulates that Banks are to report to BI pursuant to Article 45. Furthermore, Banks also have to report to the Financial Transaction Reports and AnalysisCenter (Pusat Pelaporan dan Analisis Transaksi Keuangan) pursuant to Article 46.
Failure to comply with the provisions of the regulation will subject the relevant party to sanctions as provided under Chapter X.
The regulation provides that every bank that has Guidelines on Know Your Customer in place, must then ensure that those guidelines are in compliance with the provisions of this regulation within 12 months of the date of enactment of this regulation.
The regulation has been in force since 1 July 2009.
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