Regulatory Alerts2012-11-23
Bank Indonesia Regulation No. 14/17/PBI/2012 Concerning Bank Business Activity in the Form of Trust
Bank Indonesia issued Regulation No. 14/17/PBI/2012 to establish the legal framework for domestic banks to conduct trust management activities under a free foreign exchange system. The regulation mandates that trust services be operated by separate business units handling only financial assets, subjecting providers to strict capital adequacy, rating, and reporting requirements. It further defines the rights and obligations of settlors, trustees, and beneficiaries while outlining procedures for asset segregation and liquidation to ensure financial stability.
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