Regulatory Alerts2016-10-19
Regulation of Bank Indonesia Number 18/20/PBI/2016 on Business Activities of Non-Bank Foreign Exchange
Bank Indonesia issued Regulation Number 18/20/PBI/2016 to replace previous rules and establish explicit guidelines for the business activities of non-bank foreign exchange providers, commonly known as Money Changers. The regulation mandates strict licensing requirements, including 100% Indonesian ownership, and imposes obligations regarding underlying transaction documentation, transparent exchange rate determination, and customer data protection. It also grants Bank Indonesia the authority to supervise these entities, evaluate licenses, and regulate cooperation with hotels and border area operators while providing a six-month transition period for unlicensed entities to regularize their status.
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