POJK on the Implementation of Anti-Money Laundering and Counter-Terrorist Financing Programs by Financial Service Providers in the Non-Bank Financial Industry Sector

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 39/POJK.05/2015
CONCERNING
THE IMPLEMENTATION OF ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING PROGRAMS BY FINANCIAL SERVICE PROVIDERS IN THE NON-BANK FINANCIAL INDUSTRY SECTOR BY THE GRACE OF THE ALMIGHTY GOD THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that with the increasing complexity of products, activities, and information technology within the Non-Bank Financial Industry, the risk of financial service providers in the Non-Bank Financial Industry sector being used as a means of money laundering and terrorist financing is increasingly open; b. that regulations regarding the customer identification principle by financial service providers in the Non-Bank Financial Industry sector need to be adjusted to international standards regarding the implementation of anti-money laundering and counter-terrorist financing programs;
c. that to implement the provisions of Article 32 paragraph (3) of Law Number 40 of 2014 concerning Insurance, it is necessary to regulate the implementation of anti-money laundering and counter-terrorist financing policies for insurance companies, sharia insurance companies, and insurance brokerage companies;
d. that based on the considerations referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning the Implementation of Anti-Money Laundering and Counter-Terrorist Financing Programs by Financial Service Providers in the Non-Bank Financial Industry Sector; Recalling:

1. Law Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering Crimes (State Gazette of the Republic of Indonesia Year 2010 Number 122, Supplement to the State Gazette of the Republic of Indonesia Number 5164);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
3. Law Number 9 of 2013 concerning the Prevention and Eradication of Terrorist Financing Crimes (State Gazette of the Republic of Indonesia Year 2013 Number 50, Supplement to the State Gazette of the Republic of Indonesia Number 5406);
4. Law Number 40 of 2014 concerning Insurance (State Gazette of the Republic of Indonesia Year 2014 Number 337, Supplement to the State Gazette of the Republic of Indonesia Number 5618);
5. Government Regulation Number 43 of 2015 concerning Reporting Parties in the Prevention and Eradication of Money Laundering Crimes (State Gazette of the Republic of Indonesia Year 2015 Number 148, Supplement to the State Gazette of the Republic of Indonesia Number 5709);

DECIDES:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE IMPLEMENTATION OF ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING PROGRAMS BY FINANCIAL SERVICE PROVIDERS IN THE NON-BANK FINANCIAL INDUSTRY SECTOR.

CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are defined as:

1. Insurance Company is an insurance company as referred to in Law Number 40 of 2014 concerning Insurance.
2. Sharia Insurance Company is a sharia insurance company as referred to in Law Number 40 of 2014 concerning Insurance.
3. Insurance Brokerage Company is a company that conducts insurance brokerage business as referred to in Law Number 40 of 2014 concerning Insurance.
4. Financial Institution Pension Fund, hereinafter abbreviated as DPLK, is a financial institution pension fund as referred to in Law Number 11 of 1992 concerning Pension Funds.
5. Financing Company is a business entity that conducts financing activities for the procurement of goods and/or services, including those that conduct all or part of their business based on sharia principles.
6. Venture Capital Company, hereinafter abbreviated as PMV, is a business entity that conducts venture capital business activities, venture fund management, fee-based service activities, and other activities with the approval of the Financial Services Authority, including those that conduct all or part of their business based on sharia principles.
7. Infrastructure Financing Company is a business entity established specifically to conduct financing in the form of providing funds for infrastructure projects.
8. Indonesia Export Financing Agency, hereinafter abbreviated as LPEI, is the Indonesia Export Financing Agency as referred to in Law Number 2 of 2009 concerning the Indonesia Export Financing Agency.
9. Pawnshop Company is a private pawnshop company and a government pawnshop company regulated and supervised by the Financial Services Authority.
10. Microfinance Institution, hereinafter abbreviated as LKM, is a microfinance institution as referred to in Law Number 1 of 2013 concerning Microfinance Institutions.
11. Financial Service Provider in the Non-Bank Financial Industry Sector, hereinafter referred to as PJK, is an Insurance Company, Sharia Insurance Company, Insurance Brokerage Company, DPLK, Financing Company, PMV, Infrastructure Financing Company, LPEI, Pawnshop Company, and LKM.
12. Money Laundering is money laundering as referred to in Law Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering Crimes.
13. Terrorist Financing is terrorist financing as referred to in Law Number 9 of 2013 concerning the Prevention and Eradication of Terrorist Financing Crimes.
14. Anti-Money Laundering and Counter-Terrorist Financing, hereinafter referred to as APU and PPT, are efforts to prevent and eradicate money laundering and terrorist financing crimes.
15. Customer is a party using the services of a PJK.
16. Account is a complete record of information regarding a Customer, including but not limited to identity, transactions, or agreements between the PJK and the Customer.
17. Beneficial Owner is any party that:
    a. is the actual owner of the funds placed with the PJK (ultimately own account); b. controls the Customer's transaction;
    c. grants power of attorney to conduct transactions; and/or
    d. exercises control through legal entities or agreements.
18. Customer Due Diligence, hereinafter referred to as CDD, is an activity consisting of identification, verification, and monitoring conducted by the PJK to ensure transactions are consistent with the profile, characteristics, and/or transaction patterns of prospective Customers or Customers.
19. Enhanced Due Diligence, hereinafter referred to as EDD, is a deeper CDD action conducted by the PJK regarding prospective Customers or Customers who fall into high-risk areas regarding the possibility of Money Laundering and Terrorist Financing.
20. High Risk Customers are Customers who, based on their identity background and history, are considered to have a high risk of engaging in activities related to money laundering and/or terrorist financing crimes.
21. Politically Exposed Person, hereinafter referred to as PEP, is a person who has or has had public authority, including state officials as referred to in regulations governing state officials, and/or persons recorded or previously recorded as members of political parties that influence the policy and operational aspects of political parties, whether Indonesian citizens or foreign citizens.
22. Suspicious Financial Transaction is a suspicious financial transaction as referred to in Law Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering Crimes and/or Law Number 9 of 2013 concerning the Prevention and Eradication of Terrorist Financing Crimes.
23. Cash Financial Transaction is a cash financial transaction as referred to in Law Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering Crimes.
24. High Risk Countries are:
    a. foreign countries declared inadequate in implementing Financial Action Task Force recommendations in the field of prevention and eradication of money laundering and terrorist financing crimes based on evaluation (mutual assessment) results by the Financial Action Task Force and/or regional association bodies including Asia Pacific Group on Money Laundering (APG), Caribbean Financial Action Task Force (CFATF), MONEYVAL, Eastern and Southern Africa Anti Money Laundering Group (ESAAMLG), The Eurasian Group on Money Laundering and Financing of Terrorism (EAG), GAFISUD, Inter Governmental Action Group against Money Laundering in West Africa (GIABA), or MiddleEast & North Africa Financial Action Task Force (MENAFATF); b. foreign countries known widely as drug production and trading centers;
    c. foreign countries with low or below 50 (fifty) governance levels based on the latest worldwide governance indicators published by the World Bank;
    d. foreign countries identified as tax havens, including based on data from the Organisation for Economic Cooperation and Development; and/or e. foreign countries known to have low corruption perception indices or indices below 40 (forty) based on Transparency International.
25. Board of Directors:
    a. for Insurance Companies, Sharia Insurance Companies, Insurance Brokerage Companies, Financing Companies, PMVs, Infrastructure Financing Companies, Pawnshop Companies, or LKMs in the form of limited liability companies, is the board of directors as referred to in Law Number 40 of 2007 concerning Limited Liability Companies; b. for Insurance Companies, Sharia Insurance Companies, Insurance Brokerage Companies, Financing Companies, PMVs, Infrastructure Financing Companies, Pawnshop Companies, or LKMs in the form of cooperative legal entities, is the management as referred to in Law Number 25 of 1992 concerning Cooperatives;
    c. for Insurance Companies, Sharia Insurance Companies, or Insurance Brokerage Companies in the form of joint venture legal entities, is the board of directors as referred to in the company's articles of association;
    d. for PMVs in the form of limited partnerships, is the equivalent of the Board of Directors as referred to in the company's articles of association; e. for DPLK, is the management as referred to in Law Number 11 of 1992 concerning Pension Funds; or f. for LPEI, is the executive director who is a member of the board of directors appointed by the minister to carry out LPEI operational activities as referred to in Law Number 2 of 2009 concerning the Indonesia Export Financing Agency.
26. Board of Commissioners:
    a. for Insurance Companies, Sharia Insurance Companies, Insurance Brokerage Companies, Financing Companies, PMVs, Infrastructure Financing Companies, Pawnshop Companies, or LKMs in the form of limited liability companies, is the commissioners as referred to in Law Number 40 of 2007 concerning Limited Liability Companies; b. for Insurance Companies, Sharia Insurance Companies, Insurance Brokerage Companies, Financing Companies, PMVs, Infrastructure Financing Companies, Pawnshop Companies, or LKMs in the form of cooperative legal entities, is the supervisors as referred to in Law Number 25 of 1992 concerning Cooperatives;
    c. for Insurance Companies, Sharia Insurance Companies, or Insurance Brokerage Companies in the form of joint venture legal entities, is the commissioners as referred to in the company's articles of association;
    d. for PMVs in the form of limited partnerships, is the equivalent of the Board of Commissioners as referred to in the company's articles of association; e. for DPLK, is the supervisory board as referred to in Law Number 11 of 1992 concerning Pension Funds; or f. for LPEI, is the board of directors as referred to in Law Number 2 of 2009 concerning the Indonesia Export Financing Agency.
27. Financial Transaction Reports and Analysis Center, hereinafter abbreviated as PPATK, is the Financial Transaction Reports and Analysis Center as referred to in Law Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering Crimes.
28. Financial Services Authority, hereinafter abbreviated as OJK, is the Financial Services Authority as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.

CHAPTER II
OBLIGATIONS FOR THE IMPLEMENTATION OF ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING PROGRAMS
Article 2
(1) PJKs are obligated to implement APU and PPT programs.
(2) In implementing the APU and PPT program as referred to in paragraph (1), PJKs are obligated to have guidelines for the implementation of APU and PPT programs. (3) APU and PPT programs are part of the overall risk management implementation of PJKs. (4) The implementation of APU and PPT programs as referred to in paragraph (1) must at least include:
a. active supervision by the Board of Directors and Board of Commissioners; b. policies and procedures;
c. internal controls;
d. management information systems; and e. human resources and training.

CHAPTER III
ACTIVE SUPERVISION BY THE BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS First Section Active Supervision by the Board of Directors
Article 3
Active supervision by the Board of Directors regarding the implementation of APU and PPT programs must at least be carried out by:
a. ensuring that the PJK has policies and procedures for implementing APU and PPT programs; b. ensuring that the implementation of APU and PPT programs is carried out in accordance with the established guidelines for implementing APU and PPT programs;
c. ensuring that the guidelines for implementing APU and PPT programs align with changes and developments in PJK products, services, and technology, as well as with developments in money laundering and/or terrorist financing modus operandi; and
d. ensuring that all employees involved in implementing APU and PPT programs have periodically received training related to the implementation of APU and PPT programs.

Second Section
Active Supervision by the Board of Commissioners
Article 4
Active supervision by the Board of Commissioners regarding the implementation of APU and PPT programs must at least be carried out by:
a. supervising the implementation of the Board of Directors' responsibilities regarding the implementation of APU and PPT programs; and b. ensuring that discussions regarding Money Laundering and Terrorist Financing take place in Board of Directors and Board of Commissioners meetings.

CHAPTER IV
RESPONSIBLE PARTIES FOR THE IMPLEMENTATION OF ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING PROGRAMS First Section General
Article 5
(1) PJKs are obligated to form a special operational unit and/or designate PJK officials responsible for implementing APU and PPT programs.
(2) The special operational unit and/or PJK officials as referred to in paragraph (1) are established as part of the PJK's organizational structure and are responsible to the Board of Directors. (3) PJKs are obligated to ensure that the special operational unit and/or PJK officials responsible for implementing APU and PPT programs as referred to in paragraph (1) have adequate capabilities and the authority to access all Customer data and other related information. (4) The special operational unit and/or PJK officials as referred to in paragraph (1) are assisted by branch office heads in implementing APU and PPT programs at branch offices.

Second Section
Special Operational Units
Article 6
In the event that a PJK forms a special operational unit as the responsible party for implementing APU and PPT programs, the following provisions apply:
a. the special operational unit must consist of at least 1 (one) person acting as the leader and 1 (one) person acting as the executor; b. the leader and executor in the special operational unit do not hold other functions concurrently;
c. the leader of the special operational unit is appointed/appointed by the Board of Directors;
d. the special operational unit is under the direct coordination of the Board of Directors in the PJK's organizational structure; and e. the special operational unit is independent from other functions.

Third Section
Assignment of Officials
Article 7
In the event that a PJK assigns an official as the responsible party for implementing APU and PPT programs, the official must be designated or appointed by the Board of Directors and may only hold concurrent positions to execute risk management functions, compliance functions, and/or internal audit functions.

Fourth Section
Tasks, Authority, and Responsibilities
Paragraph 1
Tasks
Article 8
The responsible party for implementing APU and PPT programs as referred to in Article 5 paragraph (1) has at least the following tasks:
a. drafting and updating guidelines for implementing APU and PPT programs; b. ensuring the existence of adequate information systems and Customer identification procedures, including ensuring that forms related to Customers accommodate the data required in implementing APU and PPT programs;
c. monitoring Accounts and Customer transaction executions related to Customers;
d. evaluating the results of monitoring and analysis of Customer transactions to ensure the existence or non-existence of Suspicious Financial Transactions and/or Cash Financial Transactions; e. documenting the results of monitoring and evaluation; f. monitoring the updating of Customer data and profiles; g. receiving and analyzing reports of Suspicious Financial Transactions and/or Cash Financial Transactions submitted by assigned operational units; and h. drafting reports of Suspicious Financial Transactions and/or Cash Financial Transactions in accordance with regulations concerning money laundering and/or regulations concerning terrorist financing that must be reported to PPATK.

Paragraph 2
Authority
Article 9
The responsible party for implementing APU and PPT programs as referred to in Article 5 paragraph (1) has at least the following authority:
a. obtaining access to necessary information available in all PJK organizational units; b. coordinating and monitoring the implementation of APU and PPT programs by relevant operational units; and
c. proposing officials and/or employees of relevant operational units to assist in implementing APU and PPT programs.

Paragraph 3
Responsibilities
Article 10
The responsible party for implementing APU and PPT programs as referred to in Article 5 paragraph (1) has at least the following responsibilities:
a. ensuring that all activities regarding the implementation of APU and PPT programs are carried out; b. monitoring, analyzing, and recommending training needs regarding the implementation of APU and PPT programs for PJK officials and/or employees; and
c. maintaining the confidentiality of information related to the implementation of APU and PPT programs.

CHAPTER V
POLICIES AND PROCEDURES
First Section
General
Article 11
Guidelines for implementing APU and PPT programs as referred to in Article 2 paragraph (2) contain written policies and procedures, which must at least include:
a. CDD implementation, consisting of:

1. information and document requests;
2. document verification; and
3. monitoring and updating of Customer data.
   b. Beneficial Owners;
   c. implementation of simplified CDD;
   d. implementation of EDD; e. termination of business relationships and/or rejection of transactions; f. CDD implementation by third parties; g. document management; and h. reporting to PPATK.
   Article 12
   PJKs are obligated to implement guidelines for implementing APU and PPT programs as referred to in Article 11 consistently and continuously.
   Article 13
   Guidelines for implementing APU and PPT programs as referred to in Article 11 must receive approval from the Board of Commissioners before being established by the Board of Directors.

Second Section
Customer Due Diligence (CDD)
Paragraph 1
General
Article 14
PJKs are obligated to perform CDD procedures at the time:
a. about to establish a business relationship with prospective Customers; b. establishing a business relationship with Customers;
c. there is doubt about the truthfulness of data, information, and/or supporting documents provided by prospective Customers, Customers, and/or Beneficial Owners; and/or
d. there are indications of unusual financial transactions related to Money Laundering and Terrorist Financing.
Article 15
(1) In the event that a PJK is about to establish a business relationship with prospective Customers, the PJK is obligated to:
a. request information to determine the profile of prospective Customers, including identity proven by supporting documents; b. examine the truthfulness of supporting identity documents for prospective Customers as referred to in letter a; and/or
c. conduct face-to-face meetings with prospective Customers at the beginning of establishing a business relationship to verify the truthfulness of prospective Customers' identities.
(2) Face-to-face meetings with prospective Customers as referred to in paragraph (1) letter c may not be conducted at the beginning of the business relationship, provided the following conditions are met:
a. transactions in one year amount to at most Rp5,000,000 (five million rupiah); or b. supporting documents containing identity have been legalized by competent authorities. (3) PJKs are prohibited from opening or maintaining anonymous Accounts or Accounts using fictitious names.

Paragraph 2
Request for Information and Documents
Article 16
PJKs are obligated to identify and classify prospective Customers or Customers into individual or corporate groups.
Article 17
(1) Information as referred to in Article 15 paragraph (1) letter a must at least include:
a. for individual prospective Customers:

1. data according to the prospective Customer's identity, namely:
   a) name; b) identity number; c) address; d) place and date of birth; e) gender; and f) nationality.

2. current residential address (if different from identity documents);

3. telephone number (if available);

4. marital status;

5. occupation;

6. workplace address and telephone number (if available);

7. source of funds;

8. average income;

9. purpose and objectives of the business relationship or transactions to be conducted by prospective Customers with the PJK; and

10. Beneficial Owner identity if the prospective Customer has a Beneficial Owner;
    b. for prospective Customers in the form of companies:

11. name;

12. business license number from competent authorities;

13. business field/activities;

14. registered address;

15. telephone number (if available);

16. place and date of establishment;

17. Beneficial Owner identity if the prospective Customer has a Beneficial Owner;

18. source of funds; and

19. purpose and objectives of the business relationship or transactions to be conducted by prospective Customers with the PJK.
    (2) Information for individual prospective Customers as referred to in paragraph (1) letter a must be supported by identity documents of prospective Customers in the form of photocopies of ID cards or valid passports accompanied by specimen signatures. (3) Information for corporate prospective Customers as referred to in paragraph (1) letter b must be supported by corporate identity documents and:
    a. for prospective corporate Customers classified as micro and small businesses, in addition to:

20. specimen signatures and powers of attorney to designated parties who have the authority to act on behalf of the company in establishing business relationships with the PJK;

21. NPWP card for prospective Customers who are required to have an NPWP in accordance with applicable regulations; and

22. business place permit or other documents required by the competent authority;
    b. for prospective Customer companies that are not classified as micro and small businesses, in addition to the documents referred to in letter a numbers 2 and 3, supplemented with:

23. financial statements or business activity descriptions;

24. company management structure;

25. company ownership structure; and

26. identity documents of the Board of Directors members authorized to represent the company in conducting business relations with the PJK.

Article 18
(1) For prospective Customers other than individual prospective Customers and company prospective Customers as referred to in Article 16, the PJK is required to request information as referred to in Article 17 paragraph (1) letter b. (2) The PJK is required to request supporting documents for prospective Customers as referred to in paragraph (1) at least as follows:
a. for prospective Customers in the form of a foundation legal entity, consisting of:

1. activity field permit;
2. foundation activity description;
3. structure and names of foundation administrators; and
4. identity documents of the administrators authorized to represent the foundation in conducting business relations with the PJK;
   b. for prospective Customers in the form of a legal entity association, consisting of:
5. proof of registration with the competent authority;
6. association name; and
7. identity documents of the party authorized to represent the association in conducting business relations with the PJK.

Article 19
(1) For prospective Customers in the form of government institutions, government agencies, international organizations, and foreign state representations, the PJK is required to request information regarding the name and address of the institution, agency, or representation. (2) The information as referred to in paragraph (1) must be supported by the following documents:
a. appointment letter for the party authorized to represent the institution, agency, or representation in conducting business relations with the PJK; and b. specimen signature.

Paragraph 3
Document Verification

Article 20
The PJK is required to verify supporting documents by:
a. examining the possibility of unusual or suspicious matters; b. ensuring the authenticity of the prospective Customer's documents; in case of suspicion regarding the received documents, by:

1. conducting interviews with the prospective Customer;
2. requesting other documents issued by the competent authority; or
3. cross-checking various information provided by the prospective Customer; and
   c. conducting an examination regarding the Beneficial Owner.

Paragraph 4
Customer Data Monitoring and Updating

Article 21
(1) The PJK is required to continuously monitor Customer data to ensure that transactions conducted by the Customer are consistent with the profile, characteristics, and/or habitual transaction patterns of the relevant Customer. (2) In carrying out monitoring as referred to in paragraph (1), the PJK is required to have a monitoring system that can:
a. identify, analyze, monitor, and effectively provide reports regarding the profile, characteristics, and/or habitual transaction patterns conducted by the Customer; and b. trace each transaction, if necessary, including tracing the Customer's identity, transaction type, transaction date, amount and denomination of the transaction, and the source of funds used for the transaction. (3) The PJK may request further data and/or information from the Customer regarding transactions that are inconsistent with the profile, characteristics, and/or habitual transaction patterns. (4) The PJK is required to evaluate the results of Customer data monitoring as referred to in paragraph (1) to identify the presence or absence of indicators of Suspicious Financial Transactions. (5) In the event of indicators of Suspicious Financial Transactions as referred to in paragraph (4), the PJK is required to request further data and/or information from the Customer. (6) In the event that the data and/or information provided by the Customer does not provide a convincing explanation, the PJK is required to report such Suspicious Financial Transactions to PPATK. (7) In the event of name similarity and other information regarding the Customer matching the names and information listed in the suspected terrorist list, the PJK is required to report such Customer in the Suspicious Financial Transactions report.

Article 22
(1) The PJK is required to undertake data, information, and/or supporting document updates as referred to in Article 17, Article 18, and Article 19 in the event of known changes from the PJK's monitoring of the Customer or other accountable information. (2) The PJK is required to document the data update efforts as referred to in paragraph (1).

Article 23
(1) The PJK is required to maintain a database of suspected terrorists based on data published by the government or international organizations.
(2) The PJK must periodically ensure that Customer names that are similar or identical to names listed in the suspected terrorist database are checked. (3) In the event of name similarity between the Customer and names listed in the suspected terrorist database, the PJK is required to ensure the identity of the Customer. (4) In the event of name similarity and similarity of other information between the Customer and names listed in the suspected terrorist database, the PJK is required to report such Customer in the Suspicious Financial Transactions report.

Part Three
Beneficial Owner

Article 24
(1) The PJK is required to ensure that prospective Customers act for themselves or for the benefit of the Beneficial Owner.
(2) In the event that prospective Customers act for the benefit of the Beneficial Owner, the PJK is required to conduct CDD on the Beneficial Owner identical to the CDD for prospective Customers. (3) In the event that the Beneficial Owner as referred to in paragraph (2) is classified as a PEP, the procedure applied is the EDD procedure.

Article 25
(1) The PJK is required to obtain proof of identity and/or other information regarding the Beneficial Owner.
(2) Proof of identity and/or other information as referred to in paragraph (1), consists of:
a. for individual Beneficial Owners:

1. information and identity documents as referred to in Article 17 paragraph (1) letter a and paragraph (2);
2. legal relationship between the prospective Customer and the Beneficial Owner, demonstrated by an assignment letter, agreement letter, power of attorney, or other forms; and
3. statement from the prospective Customer regarding the truthfulness of the identity and source of funds of the Beneficial Owner.
   b. for Beneficial Owners in the form of companies, foundations, or legal entity associations, identity and/or information include:
4. information and identity documents as referred to in Article 17 paragraph 1 letter b, Article 17 paragraph (3), and Article 18 paragraph (2);
5. documents and/or identity information of the ultimate owner/ultimate controller of the company, foundation, or association; and
6. statement from the prospective Customer regarding the truthfulness of the identity and source of funds of the Beneficial Owner.
   (3) In the event that the prospective Customer is a bank or other financial service provider in the domestic Non-Bank Financial Industry sector representing the Beneficial Owner, the PJK is required to request documents in the form of a written statement from the bank or other domestic financial service provider that has verified the identity of the Beneficial Owner. (4) In the event that the prospective Customer is a bank or other financial service provider in the foreign Non-Bank Financial Industry sector and applies an AML and CFT program at least equivalent to this OJK Regulation representing the Beneficial Owner, the PJK is required to request documents in the form of a written statement from the foreign bank or other financial service provider that has verified the identity of the Beneficial Owner. (5) In the event that the PJK doubts or cannot verify the documents or proof of identity and/or other information regarding the Beneficial Owner, the PJK is required to refuse business relations or transactions with the prospective Customer.

Article 26
The obligation to submit documents and/or identity information of the ultimate owner/controller of the Beneficial Owner as referred to in Article 25 paragraph (2) letter b, does not apply to Beneficial Owners in the form of:
a. government institutions; b. multilateral financial institutions; or
c. companies listed on the stock exchange.

Part Four
Simplified Customer Due Diligence (Customer Due Diligence)

Article 27
(1) The PJK may apply CDD procedures simpler than the CDD procedures as referred to in Article 14 to Article 22 for prospective Customers who have transactions with a low risk of Money Laundering and Terrorism Financing or meet the following criteria:
a. DPLK participants included by employers or self-paying participants contributing to DPLK, amounting to at most 20% (twenty percent) of monthly income or more than 20% (twenty percent) of income but not exceeding Rp5,000,000.00 (five million rupiah) per month; b. insurance products that do not promise fund returns before or after the end of the coverage period;
c. insurance products with regular premium payments if annualized do not exceed Rp25,000,000.00 (twenty-five million rupiah);
d. insurance products with single premium payments not exceeding Rp25,000,000.00 (twenty-five million rupiah); e. financing conducted by Financing Companies or PMVs with values not exceeding Rp50,000,000.00 (fifty million rupiah); f. prospective Customers and/or Customers in the form of public companies; g. types of collateral goods in the form of household appliances or warehouse goods with nominal values of at most Rp20,000,000.00 (twenty million rupiah); and/or h. nominal loan amounts or fund collection of at most Rp20,000,000.00 (twenty million rupiah). (2) For individual prospective Customers meeting the conditions as referred to in paragraph (1), the PJK is required to request information regarding:
a. full name including aliases, if any; b. identity document number (ID card/passport) proven by showing the relevant document;
c. residential address stated in the identity card;
d. current residential address (if different from the identity document); e. telephone number (if available); and f. place and date of birth.
(3) For prospective Customers and Customers in the form of companies meeting the conditions as referred to in paragraph (1), the PJK is required to request information regarding:
a. company name; b. company address and telephone number; and
c. identity documents of the party authorized to act on behalf of the company.
(4) The simplified CDD procedure as referred to in paragraph (1) does not apply if there is suspicion of Money Laundering and/or Terrorism Financing transactions. (5) The PJK is required to create and maintain a list of prospective Customers and Customers receiving simplified CDD treatment.

Part Five
Enhanced Due Diligence (EDD)

Article 28
(1) The PJK is required to conduct EDD on prospective Customers, Customers, and Beneficial Owners who are considered and/or classified as having high risk regarding Money Laundering and/or Terrorism Financing practices. (2) High risk levels as referred to in paragraph (1) can be viewed from:
a. the background or profile of prospective Customers and Beneficial Owners who are PEPs or High Risk Customers; b. business fields included in high-risk businesses;
c. the country of origin or domicile of prospective Customers or Customers, including High Risk Countries;
d. parties listed in the suspected terrorist list; and/or e. transactions suspected to be related to criminal acts in the Non-Bank Financial Industry sector, Money Laundering criminal acts, and/or Terrorism Financing criminal acts. (3) Prospective Customers, Customers, and Beneficial Owners meeting high-risk criteria or PEPs must be listed separately.

Article 29
EDD as referred to in Article 28 paragraph (1) is conducted as follows:
a. verification of prospective Customer or Beneficial Owner information, based on the truthfulness of the information, the source of information, and the type of information involved, not solely based on information provided by the prospective Customer as referred to in Article 17, Article 18, and/or Article 19; b. verification of business relations conducted by the prospective Customer or Beneficial Owner with third parties; and
c. periodic analysis of information regarding Customers, source of funds, transaction purposes, and business relations with related parties.

Article 30
(1) PJKs intending to conduct business relations with prospective Customers considered and/or classified as having high risk levels as referred to in Article 28 paragraph (1) are required to appoint a senior official responsible for business relations with such prospective Customers. (2) The senior official as referred to in paragraph (1) is authorized to:
a. approve or reject prospective Customers classified as high risk; and b. make decisions to continue or terminate business relations with Customers or Beneficial Owners classified as high risk.

Part Six
Termination of Business Relations and/or Transaction Rejection

Article 31
(1) The PJK is required to refuse to conduct business relations with prospective Customers, in the event that prospective Customers:
a. do not meet the conditions as referred to in Article 15, Article 17, Article 18, Article 19, and Article 25; b. are known and/or reasonably suspected to use fake documents; and/or
c. provide information whose truthfulness is doubted.
(2) The PJK is required to reject transactions, cancel transactions, and/or terminate business relations with prospective Customers or Customers in the event that:
a. the conditions as referred to in paragraph (1) are met; and/or b. the transaction source of funds are known and/or reasonably suspected to originate from criminal proceeds. (3) The PJK remains required to complete the identification and verification process of prospective Customer and Beneficial Owner identities, in the event of refusal of business relations with prospective Customers based on the conditions as referred to in paragraph (1) letters b and c. (4) The PJK is required to document prospective Customers or Customers meeting the conditions as referred to in paragraph (1) and paragraph (2). (5) The PJK is required to report prospective Customers or Customers as referred to in paragraph (1), paragraph (2), and paragraph (3) in the Suspicious Financial Transactions report if their transactions are suspicious. (6) The PJK's obligation to reject transactions, cancel transactions, and/or terminate business relations with prospective Customers or Customers as referred to in paragraph (2) must be included in the account opening agreement and notified to prospective Customers and Customers.

Article 32
(1) In the event that business relations are terminated as referred to in Article 31 paragraph (2), the PJK is required to notify the Customer in writing regarding the termination of business relations. (2) In the event that, after notification as referred to in paragraph (1), transaction settlement is conducted in accordance with applicable legislation.

Part Seven
Implementation of CDD by Third Parties

Article 33
(1) The PJK may appoint third parties to carry out identification and verification as part of CDD implementation.
(2) Third parties as referred to in paragraph (1) are as follows:
a. other financial service providers in the domestic sector; b. financial service providers in the foreign Non-Bank Financial Industry sector; or
c. other parties in the domestic sector that are not financial service providers,
that cooperate with the PJK.
(3) In the event that the PJK appoints third parties to carry out CDD, the PJK may use the CDD results already conducted by the third party.
(4) Third parties as referred to in paragraph (2) are required to meet the following requirements:
a. having CDD procedures in accordance with applicable regulations; b. having a cooperation contract with the PJK in the form of a written agreement;
c. willing to promptly fulfill requests for data, information, and supporting documents when needed by the PJK in the implementation of the AML and CFT program; and
d. not located in High Risk Countries.
(5) In the event that third parties are located abroad as referred to in paragraph (2) letter b, they are required to meet the criteria that such third parties have effectively implemented AML and CFT programs in accordance with Financial Action Task Force (FATF) recommendations. (6) In the event that third parties are not financial service providers as referred to in paragraph (2) letter c, CDD procedures are established by and under the coordination of the PJK. (7) In the event that the PJK appoints third parties, the PJK is required to:
a. have and implement feasibility testing and supervision procedures regarding third parties in CDD implementation; b. ensure that CDD implementation by third parties complies with the CDD procedures established by the PJK;
c. conduct documentation of CDD results conducted by third parties; and
d. be responsible for the CDD results conducted by third parties.

Article 34
(1) In the event that the PJK acts as a sales agent for other financial service providers' products, the PJK is required to submit CDD results and copies of supporting documents to the other financial service providers. (2) The procedure for fulfilling requests for CDD results and copies of supporting documents is stipulated in the cooperation agreement between the PJK and the other financial service providers.

Part Eight
Document Management

Article 35
(1) The PJK is required to maintain documents related to Customer data and Customer documents related to financial transactions for a period of 10 (ten) years from:
a. the end of business relations or transactions with Customers; or b. the discovery of transaction inconsistencies with economic and/or business purposes. (2) Documents related to Customer data as referred to in paragraph (1) at least include:
a. Customer identity; and b. transaction information including the type and amount of currency used, transaction order date, origin and destination of transactions, and account numbers related to transactions. (3) The PJK is required to provide information and/or documents as referred to in paragraph (1) to OJK and/or other competent authorities as ordered by law, when necessary.

CHAPTER VI
INTERNAL CONTROL

Article 36
(1) In ensuring the effectiveness of the AML and CFT program implementation by the PJK, the PJK is required to have an effective internal control system. (2) The implementation of an effective internal control system is evidenced by:
a. the existence of adequate policies, procedures, and internal monitoring; b. the existence of authority and responsibility limits for relevant work units regarding the implementation of the AML and CFT program; and
c. the conduct of examinations to ensure the effectiveness of the AML and CFT program implementation by internal audit work units.

Article 37
(1) The PJK is required to test the effectiveness of the AML and CFT program implementation.
(2) Testing as referred to in paragraph (1) is conducted by taking random samples (random sampling).
(3) The PJK is required to document the testing as referred to in paragraph (1).

Article 38
The PJK is required to document and update the types, indicators, and examples of suspicious transactions found in various relevant work units.

CHAPTER VII
MANAGEMENT INFORMATION SYSTEM

Article 39
(1) The PJK is required to have a management information system that can identify, analyze, monitor, and effectively provide reports regarding the transaction characteristics conducted by Customers. (2) The management information system as referred to in paragraph (1) can be conducted manually or through computerized systems.

CHAPTER VIII
HUMAN RESOURCES AND TRAINING

Article 40
In order to prevent the use of the PJK as a medium or goal for Money Laundering and/or Terrorism Financing involving internal PJK parties, the PJK is required to conduct:
a. screening procedures for employee recruitment; and b. recognition and monitoring of employee profiles.

Article 41
The PJK is required to implement AML and CFT program training programs for all relevant employees, conducted as follows:
a. preparing training programs implemented at least 1 (one) time in 1 (one) year; b. implementing training programs according to the scheduled program; and
c. reporting the implementation of training programs to OJK at the latest in the year following the year of the training program implementation.

Article 42
The PJK is required to conduct continuous training regarding:
a. implementation of legislation related to the AML and CFT program; b. techniques, methods, and typologies of Money Laundering and/or Terrorism Financing; and
c. policies and procedures for implementing the AML and CFT program, as well as the roles and responsibilities of employees in preventing and combating Money Laundering and/or Terrorism Financing.

CHAPTER IX
IMPLEMENTATION OF ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING PROGRAMS FOR BRANCH OFFICES OF FINANCIAL SERVICE PROVIDERS IN THE FORM OF INDONESIAN LEGAL ENTITIES ABROAD

Article 43
(1) PJKs in the form of Indonesian legal entities are required to transmit AML and CFT program policies and procedures to all networks of offices and subsidiaries abroad, and monitor their implementation. (2) In the event that the country where the networks of offices and subsidiaries abroad are located as referred to in paragraph (1) has stricter AML and CFT regulations than those regulated in this OJK Regulation, the relevant networks of offices and subsidiaries are required to comply with

provisions issued by the authorities of the relevant country.
(3) In the event that the country where the network of offices and subsidiaries referred to in paragraph (1) is located has not complied with FATF recommendations or has complied but the standards of the APU and PPT Program held are more lenient than those regulated in this OJK Regulation, the network of offices and subsidiaries concerned must implement the APU and PPT program as regulated in this OJK Regulation. (4) In the event that the implementation of the APU and PPT program as regulated in this OJK Regulation results in a violation of applicable legislation in the country where the network of offices and subsidiaries is located, the official of the PJK office abroad must inform the PJK headquarters and the OJK that the PJK office concerned cannot implement the APU and PPT program as regulated in this OJK Regulation.

CHAPTER X
REPORTING
Article 44
(1) In order to implement the APU and PPT program based on this OJK Regulation, PJKs are required to submit to the OJK:
a. guidelines for the implementation of APU and PPT as referred to in Article 2 paragraph (2); and b. reports on the implementation of training programs for the implementation of the APU and PPT program as referred to in Article 41 letter c. (2) The guidelines for the implementation of APU and PPT as referred to in paragraph (1) letter a must be submitted no later than June 30, 2016. (3) Reports on the implementation of the training program as referred to in paragraph (1) letter b must be submitted no later than January 15 of the following year. (4) If the deadline for submitting reports as referred to in paragraph (2) and paragraph (3) falls on a holiday, the deadline for submitting reports is the next working day.

Article 45
(1) PJKs are required to submit reports on Suspicious Financial Transactions, reports on Cash Financial Transactions, and/or other reports to the PPATK as regulated in provisions and legislation governing the prevention and eradication of the criminal act of Money Laundering and/or Terrorism Financing. (2) The submission of reports as referred to in paragraph (1) is carried out with reference to provisions issued by the PPATK.

CHAPTER XI
OTHER PROVISIONS
Article 46
PJKs are required to take necessary measures to prevent the misuse of technology development in Money Laundering and/or Terrorism Financing schemes.

Article 47
PJKs are required to cooperate with law enforcement agencies and competent authorities in the eradication of Money Laundering and/or Terrorism Financing.

CHAPTER XII
SANCTIONS
Article 48
(1) Violations of the provisions as referred to in Article 2 paragraph (1) and (2), Article 5 paragraph (1) and (3), Article 12, Article 13, Article 14, Article 15 paragraph (1), Article 16, Article 17 paragraph (2) and (3), Article 18 paragraph (1) and (2), Article 19 paragraph (1), Article 20, Article 21 paragraph (1), (2), (4), (5), (6), and (7), Article 22, Article 23 paragraph (1), (3), and (4), Article 24 paragraph (1) and (2), Article 25 paragraph (1), (3), (4), and (5), Article 27 paragraph (2), (3), and (5), Article 28 paragraph (1), Article 30 paragraph (1), Article 31, Article 32 paragraph (1), Article 33 paragraph (4), (5), and (7), Article 34 paragraph (1), Article 35 paragraph (1) and (3), Article 36 paragraph (1), Article 37 paragraph (1) and (3), Article 38, Article 39 paragraph (1), Article 40, Article 41, Article 42, Article 43, Article 44 paragraph (1), Article 45 paragraph (1), Article 46, and Article 47 of this OJK Regulation are subject to administrative sanctions in the form of:
a. written warnings; b. restrictions on business activities; or
c. suspension of business activities.
(2) Written warning sanctions as referred to in paragraph (1) letter a may be given for a maximum of 3 (three) consecutive times, with each validity period being a maximum of 2 (two) months. (3) Administrative sanctions as referred to in paragraph (1) letter b or letter c may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a.

Article 49
Administrative sanctions for LPEI are only in the form of written warning sanctions as referred to in Article 48 paragraph (1) letter a.

Article 50
The OJK may announce the imposition of administrative sanctions as referred to in Article 48 paragraph (1) to the public.

CHAPTER XIII
TRANSITIONAL PROVISIONS
Article 51
PJKs that have had guidelines for the implementation of the customer identification principle before the implementation of this OJK Regulation remain valid and must adjust to this OJK Regulation within a period of 6 (six) months to become guidelines for the implementation of the APU and PPT program.

Article 52
For Microfinance Institutions (LKM), the provisions in this OJK Regulation are declared to take effect after 5 (five) years counted from the promulgation of this OJK Regulation.

Article 53
For private pawnshop companies that have obtained business licenses from the OJK, the provisions in this OJK Regulation are declared to take effect after 1 (one) year counted from the promulgation of this OJK Regulation.

CHAPTER XIV
CLOSING PROVISIONS
Article 54
At the time this OJK Regulation takes effect, provisions regarding the implementation of the APU and PPT program for PJKs are subject to this OJK Regulation.

Article 55
This OJK Regulation takes effect on the date of promulgation.
To ensure that everyone knows it, it is ordered to promulgate this OJK Regulation by placing it in the State Gazette of the Republic of Indonesia.

Determined in Jakarta on December 21, 2015
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD

Promulgated in Jakarta on December 28, 2015
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2015 NUMBER 320 A copy in accordance with the original Director of Law 1 Department of Law signed Sudarmaji

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 39 /POJK.05/2015
CONCERNING
THE IMPLEMENTATION OF ANTI-MONEY LAUNDERING AND COUNTER FINANCING OF TERRORISM PROGRAMS BY FINANCIAL SERVICE PROVIDERS IN THE NON-BANK FINANCIAL INDUSTRY SECTOR

I. GENERAL
In accordance with Law Number 21 of 2011 concerning the Financial Services Authority, the regulation and supervision of the Non-Bank Financial Industry (IKNB) is carried out by the OJK. The existing complexity has the potential to become an opportunity for certain parties to use IKNB as a vehicle for money laundering and terrorism financing. Based on this, it is necessary to have regulations governing the implementation of the APU and PPT program. The APU and PPT program is a principle that must be implemented by PJKs in order to prevent the risk of PJKs being used as places for money laundering and terrorism financing (Anti Money Laundering and Counter Financing Terrorism – AML/CFT). The implementation of the APU and PPT program is mandated in Law Number 8 of 2010 concerning the Prevention and Eradication of Criminal Acts of Money Laundering (Law Number 8 of 2010) and Law Number 9 of 2013 concerning the Prevention and Eradication of Criminal Acts of Terrorism Financing (Law Number 9 of 2013).

In Article 17 paragraph (1) of Law Number 8 of 2010, PJKs in IKNB categorized as reporting parties are Financing Companies, Insurance Companies and Insurance Brokerage Companies, and Pension Funds. In order to implement the APU and PPT program, the Minister of Finance Regulation Number 143/PMK.010/2009 concerning the Customer Identification Principle for the Export Financing Institution (PMK 143/2009) was established, which regulates LPEI, and the Minister of Finance Regulation Number 30/PMK.010/2010 concerning the Implementation of the Customer Identification Principle for Non-Bank Financial Institutions (PMK 30/2010), which regulates the insurance industry, financing institutions, and pension funds.

Furthermore, in Government Regulation Number 43 of 2015 concerning Reporting Parties in the Prevention and Eradication of Criminal Acts of Money Laundering, new reporting parties have been established in addition to those listed in Article 17 paragraph (1) of Law Number 8 of 2010. PJKs included as new reporting parties are PMV, Infrastructure Financing Companies, LKM, and LPEI.

Based on Law Number 8 of 2010 and Law Number 9 of 2013, the OJK is a supervisory and regulatory body. In accordance with this, the OJK has supervisory, regulatory, and/or sanctioning authority over reporting parties. Regulatory authority is exercised by establishing provisions for the implementation of the APU and PPT program. Supervisory authority is exercised by conducting compliance supervision over reporting obligations. Sanctioning authority is exercised by imposing administrative sanctions.

II. ARTICLE BY ARTICLE
Article 1
It is clear enough.

Article 2
It is clear enough.

Article 3
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
The term "periodically" refers to the provisions related to human resources and training in this OJK Regulation.

Article 4
Letter a
It is clear enough.

Letter b
Discussions regarding Money Laundering and Terrorism Financing in Board of Directors and Board of Commissioners meetings are conducted at least every 3 (three) months and are proven by meeting documentation that can be accounted for, such as meeting minutes or other documents that can prove the material discussed in the meeting and the parties present in the meeting.

Article 5
Paragraph (1)
The formation of a special work unit and/or appointment of officials without forming a special work unit is carried out according to the needs and complexity of the PJK's problems.

Paragraph (2)
It is clear enough.

Paragraph (3)
Adequate capability includes, among others, experience and knowledge regarding developments in the APU and PPT regime.

Paragraph (4)
The head of the branch office is under the coordination of the person responsible for the implementation of the APU and PPT program at the headquarters.

The term "branch office" refers to an office that carries out operational activities. For LPEI, the term branch office refers to regional offices.

Article 6
It is clear enough.

Article 7
It is clear enough.

Article 8
It is clear enough.

Article 9
It is clear enough.

Article 10
It is clear enough.

Article 11
It is clear enough.

Article 12
It is clear enough.

Article 13
It is clear enough.

Article 14
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
The term "unusual financial transactions" refers to transactions that meet one of the criteria for suspicious financial transactions but still require further investigation to ensure whether the transaction is classified as a Suspicious Financial Transaction that must be reported to the PPATK.

Article 15
Paragraph (1)
It is clear enough.

Paragraph (2)
Letter a
The term "transactions in a year totaling at most Rp5,000,000.00 (five million rupiah)" includes, for example, for Insurance Companies or Sharia Insurance Companies, insurance transactions via telemarketing or micro-insurance.

Letter b
It is clear enough.

Paragraph (3)
The term fictitious account includes a Customer account using a name that does not match the name stated in the Customer's identity document.

Article 16
It is clear enough.

Article 17
Paragraph (1)
Letter a
Number 1
Letter a)
It is clear enough.

Letter b)
The term identity number for Indonesian Citizens is the National Identity Number (NIK), while for Foreign Citizens it is the Passport Number.

Letter c)
It is clear enough.

Letter d)
It is clear enough.

Letter e)
It is clear enough.

Letter f)
It is clear enough.

Number 2
It is clear enough.

Number 3
It is clear enough.

Number 4
It is clear enough.

Number 5
It is clear enough.

Number 6
It is clear enough.

Number 7
It is clear enough.

Number 8
Filled in for those who have worked or have income. For example, students and housewives do not need to state average income because they do not work or do not have income.

Number 9
It is clear enough.

Number 10
It is clear enough.

Letter b
Number 1
It is clear enough.

Number 2
Business licenses include other licenses that are equated with business licenses issued by competent authorities.

Number 3
It is clear enough.

Number 4
It is clear enough.

Number 5
It is clear enough.

Number 6
It is clear enough.

Number 7
It is clear enough.

Number 8
It is clear enough.

Number 9
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
Supporting documents for the identity of prospective corporate Customers include:
a. deed of establishment and/or articles of association of the company; and b. business license or other licenses from competent authorities.

Letter a
The term prospective corporate Customers classified as micro and small businesses refers to corporate Customers that meet the criteria for micro and small businesses as referred to in regulations governing micro, small, and medium enterprises.

Letter b
Number 1
The description of the company's business activities includes information regarding the business field, customer profile, address of business activities, and company phone number.

Number 2
It is clear enough.

Number 3
It is clear enough.

Number 4
The term Board of Directors members authorized to represent the company to conduct business relations with the PJK refers to Board of Directors members who have specimen signatures (authorized signature).

Article 18
Paragraph (1)
It is clear enough.

Paragraph (2)
Letter a
It is clear enough.

Letter b
Legal entity associations include, among others, non-governmental organizations, religious associations, political parties, and non-profit organizations.

Article 19
Paragraph (1)
It is clear enough.

Paragraph (2)
Letter a
It is clear enough.

Letter b
The specimen signature in these provisions is the specimen signature of the party authorized to represent the institution, agency, or delegation in conducting business relations with the PJK.

Article 20
It is clear enough.

Article 21
Paragraph (1)
The term Customer profile refers to a description of the Customer including, among others, identity, occupation or business field, income or business results, and source of funds. The term Customer characteristics refers to special characteristics inherent in the Customer including, among others, scope of activities, occupation, or business. The term Customer transaction pattern habits refers to the customary transactions conducted by the Customer including, among others, amount, frequency, currency, instruments used, portfolio type, products, and duration.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
Requests for additional data and/or information by the PJK in this paragraph must observe anti-tipping off provisions as referred to in laws governing the prevention and eradication of criminal acts of money laundering and/or terrorism financing. If requests for additional data and/or information are feared to result in tipping off, the PJK may report the indicated suspicious transaction in the Suspicious Financial Transaction report without prior process of requesting additional data and/or information.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Paragraph (7)
It is clear enough.

Article 22
Paragraph (1)
It is clear enough.

Paragraph (2)
Updating documented data also includes population documents. Documentation of data updating efforts can be in the form of physical documents proving the updating effort or electronic documents in accordance with legislation on electronic information and transactions. Such documentation must be provided or shown if requested by the OJK and/or other competent authorities when needed.

Article 23
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
The term Customer name includes the Customer's alias.

Paragraph (4)
The term other information includes, among others, place and date of birth and address.

Article 24
Paragraph (1)
The definition of Beneficial Owner in these provisions can refer to more than one person.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Article 25
Paragraph (1)
It is clear enough.

Paragraph (2)
Letter a
Individual Beneficial Owners in this paragraph include Individual Beneficial Owners of prospective Customers that are government institutions or government agencies.

Letter b
Number 1
It is clear enough.

Number 2
The term "ultimate owner/ultimate controller of a company, foundation, or association" refers to an individual who, in the PJK's assessment, owns and/or exercises ultimate control to make decisions in the management of the company. Identity documents of the ultimate owner or controller can be in the form of a statement letter or other documents containing information regarding the identity of the ultimate owner or controller.

Number 3
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Article 26
Letter a
Government institutions referred to in this letter include Indonesian government institutions and foreign government institutions.

Letter b
It is clear enough.

Letter c
It is clear enough.

Article 27
It is clear enough.

Article 28
Paragraph (1)
It is clear enough.

Paragraph (2)
Letter a
Examples of PEPs refer to regulations of the head of the PPATK governing categories of service users who have the potential to commit money laundering criminal acts.

Letter b
High-risk businesses are:

1. non-bank foreign exchange exchange businesses;
2. non-bank fund transfer organizer businesses;
3. travel agent businesses;
4. cash-based businesses, including minimarkets, parking management services, Gas Filling Stations (SPBU);
5. gold or precious metal-based investment businesses;
6. businesses in the field of forest product or forestry management;
7. businesses in the field of transportation or shipping services (freight forwarding);
8. businesses in the field of real estate;
9. businesses in the trade of motor vehicles that are luxury goods;
10. businesses in the trade of gems and jewelry or precious metals;
11. businesses in the trade of art and antique goods; and/or
12. cooperatives that conduct savings and loan activities with asset values of one billion rupiah or more and/or export or import trade businesses in the field of biological and non-biological natural resources including oil, minerals, and coal.

Letter c
Jurisdictions that are subject to mutual assessment by organizations conducting such assessments on a country (such as the Financial Action Task Force on Money Laundering (FATF)). To determine the risk level of a country, one can look at www.fatf-gafi.org or www.apgml.org.

Letter d
Information on parties listed in terrorist name lists can be sourced from:

1. The Indonesian National Police;
2. United Nations Security Council Resolution 1267; or
3. other commonly used sources.

Letter e
Information on suspected transactions related to criminal acts in the Non-Bank Financial Industry sector, Money Laundering criminal acts, and/or Terrorism Financing criminal acts can come from:

1. reports or complaints from Customers or third parties who are harmed;
2. databases and risk management of PJKs;
3. OJK;
4. PPATK;
5. mass media informing that a prospective Customer or Customer has committed a criminal act and has been decided by a court with permanent legal force;
6. law enforcement agencies; and/or
7. other sources whose truthfulness can be accounted for.

Paragraph (3)
It is clear enough.

Article 29
It is clear enough.

Article 30
It is clear enough.

Article 31
It is clear enough.

Article 32
Paragraph (1)
Written notifications addressed to Customers are sent to the address recorded in the PJK's database.

Paragraph (2)
It is clear enough.

Article 33
Paragraph (1)
It is clear enough.

Paragraph (2)
Letter a
Other financial service providers in the country include financial service providers under the supervision of the OJK.

Letter b
It is clear enough.

Letter c
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
Letter a
CDD procedures include identification and verification of prospective Customers.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
The classification of the risk level of a country is issued by, among others, the Financial Action Task Force (FATF) and/or The Asia/Pacific Group on Money Laundering (APG), which can be viewed on the websites www.fatf-gafi.org or www.apgml.org.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Paragraph (7)
Letter a
It is clear enough.

Letter b
In ensuring the implementation of CDD by third parties, PJKs can perform the following actions, among others:

1. periodically review the policies and procedures for the implementation of the APU and PPT program by the third party; and
2. conduct spot checks or sampling to ensure compliance with policies and procedures.

Letter c
The term CDD result documents refers to forms containing data and/or information of prospective Customers or Customers and supporting documents.

Letter d
It is clear enough.

Article 34
Paragraph (1)
The term other financial service providers refers to PJKs and financial service providers supervised by the OJK.

Paragraph (2)
It is clear enough.

Article 35
Paragraph (1)
Documents can be managed in original form, copies, electronic form, microfilm, or documents that based on applicable legislation can be used as evidence. The term "documents related to Customer data" includes, among others, identity documents, analysis results related to the Customer profile, and correspondence with Customers.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Article 36
It is clear enough.

Article 37
It is clear enough.

Article 38
It is clear enough.

Article 39
It is clear enough.

Article 40
The use of PJK services as a medium for Money Laundering and Terrorism Financing may also involve PJK employees themselves.
Screening is conducted to prevent the use of PJKs as a means and/or goal for Money Laundering and/or Terrorism Financing involving internal parties of the PJK.

Article 41
In determining training participants, PJKs prioritize employees whose daily tasks meet the following criteria:
a. dealing directly with prospective Customers or Customers (front liner); b. supervising the implementation of the APU and PPT program; and/or
c. involved in the preparation of reports to the PPATK and OJK.
The Board of Directors and Board of Commissioners are not required to participate in the APU and PPT program implementation training, but must still be aware of developments related to the implementation of the APU and PPT program, including developments related to Money Laundering and Terrorism Financing.

Letter a
The term training includes at least knowledge sharing and/or inviting speakers from internal and/or external sources of the company.

Letter b
It is clear enough.

Letter c
It is clear enough.

Article 42
It is clear enough.

Article 43
Paragraph (1)
The APU and PPT program policies and procedures referred to in this paragraph include policies and procedures for information exchange for CDD purposes and risk management against Money Laundering and Terrorism Financing. In carrying out such information exchange, information security levels and applicable legislation must still be observed. The term "subsidiary" refers to a subsidiary where the majority ownership lies with the PJK.

Paragraph (2)
In this case, the PJK must ensure that the provisions in this OJK Regulation are more lenient than the provisions issued by the authorities of the location of the PJK's branch offices and subsidiaries abroad.

Paragraph (3)
In this case, the PJK must ensure that the provisions in this OJK Regulation are more lenient than the provisions issued by the authorities of the location of the PJK's branch offices and subsidiaries abroad.

Paragraph (4)
It is clear enough.

Article 44
It is clear enough.

Article 45
It is clear enough.

Article 46
It is clear enough.

Article 47
It is clear enough.

Article 48
It is clear enough.

Article 49
It is clear enough.

Article 50
It is clear enough.

Article 51
It is clear enough.

Article 52
It is clear enough.

Article 53
It is clear enough.

Article 54
It is clear enough.

Article 55
It is clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5790