Financial Crime World

OJK’s Investigative Team Cracks Down on Financial Crimes in Indonesia: A Look at Regulation 16/2023

In an attempt to strengthen its efforts in combating financial crimes within the Indonesian financial sector, the Financial Services Authority (OJK) has issued a new regulatory framework, OJK Regulation No. 16/2023. This regulation grants extended investigative powers to the OJK’s investigation team. The team, a collaboration between Police, civil servant investigators, and OJK officials, is now authorized to probe financial crimes across various sectors.

Sectors under OJK’s Investigative Scope

The regulation empowers the OJK’s investigative team to probe financial crimes in the following sectors:

  • Banking
  • Carbon exchanges
  • Capital markets and derivative finance
  • Multifinance and venture capital companies
  • Microfinance institutions
  • Other financial services firms

OJK’s Investigative Team’s Authorized Powers

Once an inquiry (penyelidikan) is initiated based on a report or complaint, the OJK’s investigative team is authorized to:

  1. Receive reports, notifications, or complaints: Individuals can report suspected financial crimes to the OJK.
  2. Summon, search, and request testimony or evidence: Suspects can be summoned for questioning and evidence collected.
  3. Examine records and documents: The team can examine the records and documents of the suspects.
  4. Request assistance from the police or other government agencies: The team can also request assistance from other government agencies.
  5. Conduct searches and confiscate items as evidence: The team is authorized to conduct searches and confiscate items as evidence.

Conducting an Inquiry and Investigation

During an investigation (penyidikan), the OJK and the police work together to compile evidence for potential prosecution. Any individual or entity under suspicion may opt for an alternative settlement process to resolve criminal charges. This process involves the submission of a petition to the OJK, which undergoes evaluation based on its rehabilitative effect, proposed value, and impact on the financial services industry. Approved petitions lead to settlement agreements, which include terms for reparation and potential corrective actions.

OJK’s Investigative Reach against Money Laundering

OJK’s investigative powers extend to money laundering cases related to financial sector crimes. In such cases, the OJK may collaborate with the Center for Financial Transaction Reports and Analysis (Pusat Pelaporan dan Analisis Transaksi Keuangan) and request financial information from institutions or block suspects’ accounts.

Note: This article is for general information purposes only and does not constitute legal advice. It is recommended that professionals be consulted for specific matters. © 2023 Media Company. All rights reserved.