Financial Crime World

Financial Institutions in Indonesia Adopting Compliance Software Solutions

Embracing Cloud Technology While Meeting Regulatory Requirements

Indonesia’s financial institutions are increasingly relying on compliance software solutions to ensure they meet the regulatory requirements set by the Otoritas Jasa Keuangan (Financial Authority of Indonesia, or OJK) and Bank Indonesia (BI). A new guide aims to assist these institutions in adopting Amazon Web Services (AWS) cloud technology while complying with local regulations.

Key Considerations for Financial Institutions

  • The guide highlights the respective roles played by customers and AWS in managing and securing cloud environments.
  • It provides an overview of regulatory requirements and guidance for financial institutions using AWS, as well as additional resources to help design and architect their AWS environment to meet security and regulatory objectives.

Regulatory Requirements in Indonesia

  • Financial institutions regulated by OJK must assess their responsibilities regarding guidelines and requirements when using the AWS Cloud.
  • The guide provides considerations for entities regulated by OJK, including Information Technology Operation by Commercial Banks 11/POJK.03/2022 and OJK Circular Letter On Implementation Of Risk Management In Use Of Information Technology By Banks 21/SEOJK.03/2017.

Electronic System Operators in Indonesia

  • Electronic system operators can now transfer or store data offshore, following Government Regulation 71 Concerning the Operation of Electronic System and Transaction (GR 71).
  • This regulation amends existing Government Regulation 82 of 2012 Concerning Electronic System and Transaction Operation (GR 82).

Compliance with PCI DSS 3.2.1

  • Financial institutions using AWS services in Indonesia must comply with Payment Card Industry Data Security Standard (PCI DSS) 3.2.1.
  • The guide provides information on how customers can leverage AWS services to safeguard customer content in the context of GR 71 and PCI DSS compliance.

Common Privacy and Data Protection Considerations

  • The paper discusses common privacy and data protection considerations for financial institutions using AWS to store or process personal data.
  • It highlights the respective roles played by customers and AWS in managing and securing content stored on AWS services.

Compliance-Enabling Features of AWS

  • AWS has many compliance-enabling features that enable regulated workloads in the cloud.
  • These features provide a higher level of security at scale, with benefits including lower costs, easier operations, and improved agility.

Additional Resources for Financial Institutions

  • The company’s Operational Resilience paper describes how AWS and financial institutions achieve operational resilience using AWS services.
  • Data Classification and Secure Cloud Adoption provides insights into classification schemes for public and private organizations moving data to the cloud.
  • AWS Policy Perspectives: Data Residency addresses government demands for in-country data residency, commercial impact, and economic implications.
  • The Risk and Compliance document provides information on integrating AWS into existing control frameworks supporting IT environments.
  • The company’s Security Audit Guidelines offer a systematic approach to reviewing and monitoring AWS resources for security best practices.

Conclusion

With these compliance software solutions, financial institutions in Indonesia can ensure they meet regulatory requirements while adopting cloud technology to improve operations and reduce costs. By leveraging the various features and resources offered by AWS, financial institutions can securely move their workloads to the cloud and reap the benefits of increased agility, scalability, and cost savings.