Indonesia’s Financial Crimes Investigation Agencies: A Look into OJK’s Powers and Procedures
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The Indonesian Financial Services Authority (OJK) has been granted the power to investigate crimes in the financial sector under Regulation No. 16/2023. This regulation empowers OJK to conduct investigations in various areas, including:
- Banking
- Carbon exchanges
- Capital market and derivative finance
- Multifinance companies
- Venture capital companies
- Microfinance companies
- Other financial services companies
The Investigative Team
The investigative team at OJK is a joint agency comprising officials from the Police of the Republic of Indonesia, civil servant investigators appointed by the Minister of Law and Human Rights, and OJK officials who meet the qualifications set by the Police. The team’s responsibilities include:
- Receiving reports and complaints
- Summoning suspects
- Searching and seizing evidence
- Examining documents
- Requesting assistance from other government agencies
Investigation Procedures
Under OJK Regulation No. 16/2023, OJK has the discretion to decide whether to launch an inquiry or investigation based on a report, notification, or complaint. Once an investigation is initiated, OJK will coordinate with the Police to build up the case and gather evidence for prosecution. The final step involves handing over all evidence and case materials to the public prosecutor for further prosecution.
Alternative Settlement of Criminal Charges
The regulation also provides for alternative settlement of criminal charges, allowing suspects to propose a settlement agreement in exchange for reparation and corrective actions. If approved, the agreement will be formalized into a binding contract between OJK and the suspect, incorporating terms such as:
- Reparation
- Administrative sanctions
Money Laundering Investigations
In addition to its investigation powers, OJK is also authorized to investigate money laundering cases related to crimes in the financial services sector. In conducting these investigations, OJK may cooperate with the Center for Financial Transaction Reports and Analysis and request information from financial services institutions on the financial condition of suspects or instruct them to block suspect accounts.
Conclusion
Overall, OJK’s regulatory powers provide a crucial framework for investigating and combating financial crimes in Indonesia, ensuring the stability and integrity of the country’s financial system.