OJK Regulates Implementation of Commercial Bank Compliance

The Financial Services Authority (“OJK”) has issued Regulation No. 46/POJK.03/2017 on the Implementation of Commercial Bank Compliance (“Regulation 46/2017”) with the objective of minimizing the risks inherent to commercial banking business in both a preventative and curative manner.[1]
 
Prior to the issuance of Regulation 46/2017, these same matters were regulated under Bank Indonesia (“BI”) Regulation No. 13/2/PBI/2011[2] on the Implementation of Commercial Bank Compliance (“Regulation 13/2011”).
 
In essence, this new regulation makes a minor alteration to the provisions which were originally set out under Regulation 13/2011. However, the authority to regulate and supervise financial services across the banking sector has now been transferred from BI to the OJK. Our discussion of Regulation 46/2017 will address the following matters: