Regulatory Alerts2009-11-30
Standard Guidelines for Implementation Anti Money Laundering and Combating The Financing of Terrorism Program for Commercial Banks
Bank Indonesia issued Circular Letter No. 11/31/DPNP to establish standard guidelines for commercial banks implementing Anti Money Laundering and Combating The Financing of Terrorism programs. These guidelines define minimum requirements for practical policies covering management, customer due diligence, risk-based classification, and internal controls. The document mandates specific procedures for high-risk areas, cross-border banking, wire transfers, and record keeping to ensure regulatory compliance effective November 30, 2009.
No. 11/ 31 /DPNP Jakarta, 30 November 2009 C I R CU L L A R L E T T E R Intended for ALL COMMERCIAL BANKS IN INDONESIA Regarding : Standard Guidelines for Implementation Anti Money Laundering and Combating The Financing of Terrorism Program for Commercial Banks With the issuance of Regulation of Bank Indonesia Number 11/28/PBI/2009 dated July 1, 2009 concerning The Implementation Anti Money Laundering and Combating The Financing of terrorism Program for Commercial Banks (State Gazette of the Republic of Indonesia of 2009 Number 106, Supplement to the State Gazette of the Republic of Indonesia Number 5032), it is deemed necessary to establish the Guide to Standard for The Implementation Anti Money Laundering and Combating The Financing of Terrorism Program for Commercial Banks as presented in the appendix to this Circular Letter of Bank Indonesia. The Guide to Standard for The Implementation Anti Money Laundering and Combating The Financing of Terrorism Program for Commercial Banks serves as a reference for minimum requirements that must be complied by Banks in putting together Practical Guidelines for Anti Money Laundering and Combating The Financing of Terrorism Program. The … Unofficial translation
The Guide to Standard for The Implementation Anti Money Laundering and Combating The Financing of Terrorism Program is to include at the least the following aspects:
- Management;
- CDD and EDD Policies;
- Classifying Customer using Risk Based Approach;
- Procedure on acceptance, identification, and verification (Customer Due Dilligence)
- High risk area and Politically Exposed Person (PEP);
- CDD implementation procedure performed by third party;
- Cross Border Correspondent Banking;
- Wire transfer procedure;
- Internal Control System;
- Information management system;
- Human Resources and Employees Training
- Policy and procedure on AML and CFT program implementation at the bank’s office and subsidiary in foreign jurisdiction; and
- Record keeping and reporting, therefore the whole of Guide to Standard for The Implementation Anti Money Laundering and Combating The Financing of Terrorism Program as presented in in the appendix to this Circular Letter of Bank Indonesia. Regulations in this Circular Letter of Bank Indonesia are valid as of 30 November 2009. So as to inform every person concerned, dictating the placement of this Regulation of Bank Indonesia in the Official Gazette of the Republic of Indonesia. Kindly be informed. BANK INDONESIA,
HALIM ALAMSYAH DIRECTORATE DIRECTOR BANKING RESEARCH AND REGULATION