Money Changers - Bank & Non-Bank - BI Regulation

Foreign Currency Traders (Money Changers in the Regulation) play an important strategic role in the domestic foreign exchange market and as such also play an integral role in the protection and support of a stable value of the Indonesian Rupiah (IDR). With a view to achieving the desired value and stabilization goals the Central Bank (Bank Indonesia / BI) has issued Regulation No. 9/11/PBI/2007 for this purpose.

In essence the Regulation endeavors to create a sound and responsible foreign exchange environment by mandating that all foreign currency traders, irrespective of whether they are banks or non-bank businesses, must undertake all of their activities based on principles of due care and particularly this is to include the principles related to “know your customers”. However, it is also clear from the Regulation that BI sees this as an opportunity to reduce and where perhaps eliminate the crime of money laundering, at least in terms of money laundering that exploits foreign currency traders.