Implementation of Compliance Functions for Rural Banks and Sharia Rural Banks

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Sector: Banking

Sub-Sector: Rural Banks (BPR); Sharia Rural Banks (BPRS)

Type of Regulation: OJK Circular Letter

Regulation Number: 8/SEOJK.03/2025

Effective Date: 5/26/2025

Appendix 1

SEOJK 8-SEOJK03-2025 Implementation of Compliance Functions for Rural Banks and Sharia Rural Banks.pdf Abstract SEOJK 8-SEOJK03-2025 Implementation of Compliance Functions for Rural Banks and Sharia Rural Banks.pdf FAQ SEOJK 8-SEOJK03-2025 Implementation of Compliance Functions for Rural Banks and Sharia Rural Banks.pdf

Page Content

Circular Letter of the Financial Services Authority Number 8/SEOJK.03/2025 regarding Implementation of Compliance Functions for Rural Banks and Sharia Rural Banks

Abstract: This Circular Letter of the Financial Services Authority constitutes implementing regulations for POJK Number 9 of 2024 regarding the Implementation of Corporate Governance for Rural Banks and Sharia Rural Banks, as well as POJK Number 25 of 2024 regarding the Implementation of Sharia Corporate Governance for Sharia Rural Banks.

The legal basis for this Circular Letter of the Financial Services Authority is: Law No. 7 of 1992 as amended several times, lastly with Law No. 4 of 2023; Law No. 21 of 2011 as amended with Law No. 4 of 2023; POJK No. 9 of 2024; and POJK No. 25 of 2024.

This Circular Letter of the Financial Services Authority regulates the explanation of the implementation of compliance functions at BPR and Sharia BPR, including the implementation of compliance functions, including compliance culture and its relation to the implementation of compliance risk management, supervision by the Board of Commissioners regarding the implementation of compliance functions, the execution of duties and responsibilities of Board of Directors members who oversee the compliance function, duties and responsibilities of the compliance work unit and executive officials who implement the compliance function, and reports on the implementation of compliance functions consisting of the main report on the execution of duties of Board of Directors members who oversee the compliance function and special reports.

Note: This Circular Letter of the Financial Services Authority takes effect on the date it is established. This Circular Letter of the Financial Services Authority was established on May 26, 2025. Upon the effective date of this Circular Letter of the Financial Services Authority: a) Circular Letter of the Financial Services Authority Number 6/SEOJK.03/2016 regarding the Implementation of Compliance Functions for Rural Banks; and b) Circular Letter of the Financial Services Authority Number 11/SEOJK.03/2019 regarding the Implementation of Compliance Functions for Sharia Financing Banks, are revoked and declared invalid.

BPR and Sharia BPR compile and develop guidelines for the implementation of compliance functions in accordance with the conditions, complexity of business activities, strategies, and the vision and mission of each BPR and Sharia BPR, with reference to the guidelines for the implementation of compliance functions as contained in Appendix I, which is an integral part of this Circular Letter of the Financial Services Authority.

BPR and Sharia BPR compile the Report on the Execution of Duties of Board of Directors Members Who Oversee the Compliance Function with reference to Appendix II, which is an integral part of this Circular Letter of the Financial Services Authority.