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Non-Bank Payment Instrument Issuers and Electronic Money Providers Face High Risk of Money Laundering and Terrorist Financing

Indonesian Regulators Urge Providers to Conduct Thorough Risk Assessments and Implement Stricter Measures

JAKARTA, Indonesia - The Indonesian Financial Services Authority (OJK) has issued guidelines for non-bank payment instrument issuers and electronic money providers to assess and mitigate the risks of money laundering and terrorist financing.

Key Requirements

  • Conduct a thorough risk assessment by identifying and evaluating various risk factors, including:
    • Political exposure
    • Customer due diligence
    • Geographic location
    • Distribution methods
  • Implement stricter measures to prevent financial crimes, such as:
    • Applying transaction limits on cash-out transactions
    • Conducting regular employee training on anti-money laundering and combating the financing of terrorism (AML/CFT) guidelines

Risk Areas of Concern

The OJK has identified several key risk areas that require attention from providers, including:

  • The presence of Politically Exposed Persons (PEPs)
  • Inadequate customer due diligence
  • Lack of transparency in transactions

Consequences of Non-Compliance

Providers that fail to comply with the guidelines may face penalties, including fines and even revocation of their licenses.

Risk-Based Approach Tool

The OJK has also provided a risk-based approach tool for providers to assess their risks and determine the level of risk posed by each provider. The tool categorizes risks into three levels:

  • Low
  • Medium
  • High

Providers that are classified as high-risk must implement stricter measures to mitigate these risks, while those classified as low-risk may require less stringent measures.

Purpose of the Guidelines

The guidelines aim to ensure that providers operate in a safe and secure environment, minimizing the risk of financial crimes.

Additional Information

For more information on the guidelines, please contact the OJK at [insert contact information].