Amended Capital Market Bill: Increasing Enforcement Capacity of Bapepam-LK Against Financial Crime

Granting increased authority to the Capital Market and Financial Institution Supervisory Agency (‘Bapepam-LK’) has long been discussed, and it appears that an amendment to Law No. 8 of 1995 on Capital Market - one that would bolster the investigative autonomy of the agency, and allow it to pursue financial criminals to a greater extent - is forthcoming.

In a discussion at his office last week (1/4), according to Detikfinance, Head of Bapepam-LK Ahmad Fuad Rahmany indicated that one provision of the upcoming amendment will be the authority of the agency to probe any bank account suspected to be used towards violation of the Capital Market Law, in contrast to the ‘Bank Secrecy Principle’.

In addition, a longer sentencing time for financial criminals is being discussed, from 10 years maximally afforded by the current regulation to some 20 years under an amendment.

Bapepam-LK considers its enforcement power to be fairly weak with respect to making the Capital Market Law a regulatory reality for financial criminals. Greater enforcement capacities, the agency feels, would help to mitigate the comparatively high rate of financial crime in the country.

The amendment regulation is expected be passed into law this year, said Mr. Rahmany. Since it must first pass through the House of Representatives, the exact date for its issuance is relatively uncertain.