FCC RegUpdate

On June 16, 2023, the Indonesian Financial Services Authority (OJK) issued Regulation (POJK) No. 8 of 2023 regarding the Implementation of Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT), and Counter-Proliferation Financing of Weapons of Mass Destruction (CPF). This new regulation supersedes OJK Regulation No. 12/POJK.01/2017, which pertained to the implementation of Anti-Money Laundering and Counter-Terrorist Financing Programs in the Financial Services Sector.

To know more, click https://www.fcctimes.com/2023/06/16/ojks-new-regulation-pojk-8-strengthens-aml-terrorism-financing-and-wmd-prevention-in-financial-services/

Key provisions within this regulation encompass the following:

  • Introduction of Policies and Procedures for Weapons of Mass Destruction (WMD) Proliferation
  • Mandatory Implementation of AML-CFT and CPF Programs for Trusts, Securities Crowdfunding, FinTech firms, and other Financial Institutions under OJK’s jurisdiction
  • Ensuring Financial Institutions (FIs) confirm that their supporting professionals have implemented AML, CFT, and CPF programs and are registered in GoAML, the Indonesian Financial Intelligence Unit’s reporting system
  • Revisions to Compliance Management Function, Independent Internal Audits, and Pre-Employee Screening Procedures
  • Verification of Beneficial Ownership and Application of Customer Due Diligence (CDD) by Financial Service Providers
  • Introduction of New Administrative Sanctions under POJK 8 for Violations, particularly concerning obligations to:
    – Implement the Program
    – Appoint compliance officers at the management level
    – Identify and conduct risk assessments for money laundering, terrorism financing, and WMD
  • Requirement for FIs to Prepare and Submit Individual Risk Assessments (IRAs)