Implementing Know Your Customer Principles for Non-Bank Foreign Currency Traders

Bank Indonesia Regulation No. 12/3/PBI/2010 was recently issued to ensure that ‘non-bank foreign currency traders’ (hereinafter referred to as currency exchanges) conduct appropriate due diligence procedures to prevent money laundering and terrorism financing, and additionally to accord with the recommendations of the international Financial Action Task Force on Money Laundering.

To comply with international standards, for currency exchanges must implement Prevention of Terrorism Financing and Anti-Money Laundering programs into every aspect of their operations: they can do so by consistently maintaining Customer Due Diligence practices, and conducting Enhanced Due Diligence where necessary - among other guidelines discussed in the regulation.