AML CFT Policy

Financial institutions, especially banks, are very vulnerable to the possibility of being used as a medium for money laundering and / or terrorism financing, because banks have many choices of transactions, products and services. Through these various transaction options, products and services, banking could be used as an entry point for assets resulting from criminal acts / financing of terrorism activities and the proliferation of weapons of mass destruction into the financial system which can then be used for the benefit of criminals.

In addition, the Republic of Indonesia as a member of the United Nations is also responsible for world peace, among other things through the implementation of the Revolution of the UN Security Council concerning the prevention of the prophylaxis action of weapons of mass destruction which obliges to immediately block funds owned or controlled by people or people. corporations whose identities are listed in the list of profiling funding for weapons of mass destruction, in its implementation from Joint Regulation of the Minister of Foreign Affairs of the Republic of Indonesia, Head of the Center for Financial Transaction Reporting and Analysis, and Head of the Nuclear Supervisory Agency concerning Inclusion of the Identity of Persons or Corporations in the List of Proliferation of Weapons of Mass Destruction and Merta blocking of funds belonging to people or corporations listed in the List of Profiling Weapons of Mass Destruction Profiling.

The objectives of the Anti Money Laundering and Prevention of Terrorism Financing policies and procedures are: 

  • To provide a general description of anti money laundering and prevention of terrorism financing which can be used as a reference for the Bank. 
  • Providing the same understanding to the Bank or other parties involved in the handling of money laundering and terrorism financing prevention, as well as making adjustments by taking into account the characteristics of its business field and the regulations issued by the competent institution. 
  • Increase the effectiveness of the Bank in implementing anti-money laundering and prevention of terrorism financing. 

The risks faced by the Bank are: 

  • Reputation Risk This risk is defined as the potential that adverse publication about bank practices will cause the Bank to lose trust.
  •  This reputation risk presents a big threat to the bank, because of the nature of the bank's business which requires the trust of depositors, creditors and the market in general. 

Operational Risk This risk is defined as the risk that occurs as a result of failed or insufficient internal processes / people / systems / external events. Operational risks in AML & CFT relate to weaknesses in the implementation of bank programs, ineffective control procedures and failure to carry out due diligence. Legal Risk Legal risk can occur if the Bank does not apply the precautionary principle and violates the anti tipping off provisions in conducting business relations with customers / other parties. And this legal risk is also related to fines and reprimands from BI and PPATK in implementing AML & CFT.

This Bank Risk Concentration Risk can occur to individual customers or companies that have large funds, and have a relationship in the management or ownership of the Bank. Concentration risk can be avoided by the Bank by carrying out due diligence in the relationship with the customer / debtor so that the bank can recognize its customer well, by focusing on the total funds raised or on the total credit extended by the Bank. Therefore, it is deemed necessary to formulate an internal regulation in order to improve the quality of risk management implementation at all levels of the Bank's organization in implementing anti-money laundering and terrorism financing prevention programs (AML-CFT).