"OJK Regulation Number 8 of 2023 has been issued to mitigate the risk of the money laundering crime, terrorism funding crime, and/or proliferation funding for weapons of mass destruction, which are developing and threatening the state," Head of the Board of Commissioners of the OJK Mahendra Siregar said in a statement received on Friday.
With the issuance of the new regulation, Regulation Number 12 of 2017 about the anti-money laundering program and the prevention of terrorism funding by the financial services sector, which was tweaked by OJK Regulation Number 23 of 2019, stands revoked, he informed.
He said the new regulation reflects the agency's commitment to supporting Indonesia's efforts to become a member of the Financial Action Task Force (FATF), for which the financial services sector is one of the important parameters for consideration.
The regulation outlines, among other things, the responsibility of financial services providers to adhere to the anti-money laundering and terrorism funding prevention program; providers' responsibility to ensure that the relevant professions adhere to the principles of anti-money laundering and the prevention of terrorism funding and weapons of mass destruction proliferation funding; and the providers' obligation of formulating and reporting Individual Risk Assessment, he informed.
The regulation also cites examples of countermeasures that could be taken by the providers to address states deemed by the FATF to be posing a high risk; stresses the importance of providers' customer due diligence (CDD); as well as highlights the need for completing the requirements and methods for providers’ collaboration with third parties regarding the face-to-face and electronic verification process, he added.
Siregar informed that the newest regulation also covers temporarily halting transactions that have been proven or are allegedly related to money laundering, terrorism, and weapons of mass destruction, as well as the obligations of customers and business players to report the required data through OJK's reporting system.
"And then OJK gives time to financial services providers to transition, at the most six months since the regulation in question has been issued, to do adjustments," he added.
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Translator: Sanya Dinda Susanti, Mecca Yumna
Editor: Rahmad Nasution
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