Indonesia's Financial Services Authority (OJK) has issued Regulation No. 44/2024 on Bank Secrecy, updating guidelines to align with the Financial Sector Development and Strengthening Law (UU P2SK). This regulation replaces the previous Bank Indonesia Regulation No. 2/19/PBI/2000, which had been in place for over two decades.

The new regulation adjusts the definition of bank secrecy from "everything" to "information," ensuring consistency with UU P2SK. It also introduces the term "Investor Customers and Their Investments," expanding the scope beyond depositor information.

Exceptions to bank secrecy have been updated to include mutual assistance in criminal matters, purposes of other institutions for state administration at the central level, and public interest, in accordance with their duties and authorities under the law. It also covers the implementation of reciprocal international cooperation agreements and tasks in monetary, macroprudential, and payment systems by Bank Indonesia, as well as deposit insurance and resolution tasks by the Deposit Insurance Corporation.

Banks and their affiliates are now obligated to maintain the confidentiality of information regarding depositor customers and their deposits, as well as investor customers and their investments. They must establish internal procedures for disclosing bank secrecy and document all requests and disclosures of confidential information.

The regulation outlines mechanisms for disclosing bank secrecy, both through OJK and directly to banks. Notably, it introduces procedures for interbank information exchange, specifying the purposes and general mechanisms involved.

With the enactment of this regulation on December 27, 2024, OJK aims to provide clear guidance for stakeholders, including law enforcement and the banking industry, ensuring compliance with updated bank secrecy provisions. OJK will continue to monitor and evaluate the implementation of this regulation to ensure its effectiveness and optimal benefits for all parties involved.

PHOTO: ISTOCKPHOTO

This article was created with AI assistance.