OJK Updates Guidelines for the Implementation of Anti-Money-Laundering and Prevention-of-Terrorism-Financing Programs Within the Financial-Service Sector

In response to the increasing risks relating to the provision of financial services and products, as well as to the recommendations made by the Financial Action Task Force on Money Laundering[1], the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has issued Regulation No. 12/POJK.01/2017 on the Implementation of Anti-Money-Laundering and Prevention-of-Terrorism-Financing Programs Within the Financial Sector (“Regulation 12/2017”).[2]
 
In essence, Regulation 12/2017 is aiming to improve the implementation of anti-money-laundering and prevention-of-terrorism-financing (anti pencucian uang dan pencegahan pendanaan terorisme – “APU-PPT”) programs through the implementation of a risk-based approach.[3]
 
With these goals in mind, Regulation 12/2017 merges and strengthens previous guidelines for providers of financial services within the banking, capital market and non-banking sectors (collectively referred to as “Providers”)[4] which covered the implementation of APU-PPT programs. These guidelines were previously regulated under the following regulations (collectively referred to as “Previous Regulations”):[5]