Regulatory AlertsImplementation of Risk Management for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions
The Financial Services Authority (OJK) issued Regulation No. 42 of 2024 to mandate the effective implementation of risk management across all PVML industries based on four pillars to minimize regulatory arbitrage. This regulation requires institutions to establish risk management organizations, maintain written policies for new or expanded activities, and conduct self-assessments of risk levels. It supersedes previous risk management rules for financing companies while maintaining the validity of other existing regulations that do not conflict with this new framework.
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