The Head of the Capital Market and Financial Services Supervisory Board (Bapepam-LK) is currently drafting a regulation that contains guidelines to implement the ‘Know Your Customer Principles’ for insurance companies. The Draft Head of Bapepam-LK Regulation, which implements Minister of Finance Regulation No. 30/PMK.010/2010 on the Implementation of Know Your Customer Principles for Non-Bank Financial Institutions (‘Regulation’), contains guidelines for insurance companies on formulating their ‘Guidelines for the Implementation of Know Your Customer Principles.’
Generally, the formulation of the Guidelines for the Implementation of Know Your Customer Principles is obligatory under the Regulation for every Non-Bank Financial Institution, including insurance companies. It contains procedures for insurance companies to accept customers, supervise accounts, and manage risk. Such Guidelines will then be delivered to the Bapepam-LK for approval.
Therefore, the Draft Head of Bapepam-LK Regulation serves as a standard form for every insurance company when drafting their Guidelines for the Implementation of Know Your Customer Principles.
According to the Draft Head of Bapepam-LK Regulation, any insurance companies must at least cover 5 matters in their Guidelines for the Implementation of Know Your Customer Principles. These include the following matters:
1.
The responsible individuals for the implementation of Know Your Customer Principles in the insurance company;
2.
Policy and procedures when accepting customers;
3.
Policy and procedures to indentify the customers’ background;
4.
Policy and procedures to oversee the customers’ accounts, and;
5.
Policy and procedures of Risk Management in the implementation of Know Your Customer Principles.
The abovementioned matters are further elaborated on in the Attachment to the Draft Head of Bapepam-LK Regulation.
The Draft Head of Bapepam-LK Regulation states that all insurance companies have to forward their Guidelines for the Implementation of Know Your Customer Principles to Bapepam-LK no later than 2 months from the Draft being enacted and coming into force.
In the event that the Bapepam-LK considers the submitted Guidelines to be insufficient and requiring further revision, the Bapepam-LK will notify the insurance company, and grant a one-month grace period to revise the Guidelines.
Once the Draft has been enacted, the previous regulation on the same subject matter, namely Director General of Financial Institutions Decision No. 2883/LK/2003, will be repealed and replaced.
The Draft is currently circulated for public scrutiny, but it is unclear as to when the drafting process will be concluded.
For a brief overview of the Regulation, see ILB No. 1323 19/2/2010.
The Head of the Capital Market and Financial Services Supervisory Board (Bapepam-LK) is currently drafting a regulation that contains guidelines to implement the ‘Know Your Customer Principles’ for insurance companies. The Draft Head of Bapepam-LK Regulation, which implements Minister of Finance Regulation No. 30/PMK.010/2010 on the Implementation of Know Your Customer Principles for Non-Bank Financial Institutions (‘Regulation’), contains guidelines for insurance companies on formulating their ‘Guidelines for the Implementation of Know Your Customer Principles.’
Generally, the formulation of the Guidelines for the Implementation of Know Your Customer Principles is obligatory under the Regulation for every Non-Bank Financial Institution, including insurance companies. It contains procedures for insurance companies to accept customers, supervise accounts, and manage risk. Such Guidelines will then be delivered to the Bapepam-LK for approval.
Therefore, the Draft Head of Bapepam-LK Regulation serves as a standard form for every insurance company when drafting their Guidelines for the Implementation of Know Your Customer Principles.
According to the Draft Head of Bapepam-LK Regulation, any insurance companies must at least cover 5 matters in their Guidelines for the Implementation of Know Your Customer Principles. These include the following matters:
1.
The responsible individuals for the implementation of Know Your Customer Principles in the insurance company;
2.
Policy and procedures when accepting customers;
3.
Policy and procedures to indentify the customers’ background;
4.
Policy and procedures to oversee the customers’ accounts, and;
5.
Policy and procedures of Risk Management in the implementation of Know Your Customer Principles.
The abovementioned matters are further elaborated on in the Attachment to the Draft Head of Bapepam-LK Regulation.
The Draft Head of Bapepam-LK Regulation states that all insurance companies have to forward their Guidelines for the Implementation of Know Your Customer Principles to Bapepam-LK no later than 2 months from the Draft being enacted and coming into force.
In the event that the Bapepam-LK considers the submitted Guidelines to be insufficient and requiring further revision, the Bapepam-LK will notify the insurance company, and grant a one-month grace period to revise the Guidelines.
Once the Draft has been enacted, the previous regulation on the same subject matter, namely Director General of Financial Institutions Decision No. 2883/LK/2003, will be repealed and replaced.
The Draft is currently circulated for public scrutiny, but it is unclear as to when the drafting process will be concluded.
For a brief overview of the Regulation, see ILB No. 1323 19/2/2010.
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