Regulatory Alerts2017-01-03
Circular Letter of Bank Indonesia No. 18/42/DKSP on Non-Bank Foreign Exchange Business Activities
Bank Indonesia issued Circular Letter No. 18/42/DKSP to establish implementing provisions for the regulation of Non-Bank Foreign Exchange Business Activities, specifically targeting Money Changers. The directive mandates strict operational standards including customer protection principles, a five-year license validity with renewal requirements, and mandatory training for directors on anti-money laundering and risk management. Furthermore, it imposes comprehensive reporting obligations, supervisory mechanisms, and administrative sanctions for non-compliance while regulating border area transactions and inter-party cooperation.
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