Financial Crime World

Regulating Bank-Customer Relationships: Key Provisions of OJK Regulations

Compensation Schemes for Customer Losses

Commercial banks in Indonesia are required to establish a compensation scheme that covers customers who suffer losses due to a breach of banking laws or regulations. In accordance with OJK Regulation No. 22/2023, the compensation scheme must be in the form of a deposit insurance policy that covers deposits up to IDR 50 million per customer.

Key Provisions:

  • Deposit Insurance Policy: Commercial banks must establish a deposit insurance policy that covers deposits up to IDR 50 million per customer.
  • Financial Losses Coverage: The compensation scheme should cover customers who suffer losses due to the bank’s fault or breach of banking laws and regulations.

Regulating Relationships with Third Parties

OJK also regulates the relationship between banks and other third parties, such as suppliers and contractors. According to OJK Regulation No. 9/POJK.03/2016, commercial banks are allowed to outsource certain tasks to third parties, but must ensure that these third parties comply with banking laws and regulations.

Key Provisions:

  • Outsourcing Permitted: Commercial banks are allowed to outsource certain tasks to third parties.
  • Compliance Required: Third-party service providers must comply with banking laws and regulations.

Dispute Resolution Framework

OJK has established a framework for resolving disputes between banks and their customers. In accordance with POJK 22/2023, consumers have the right to file a complaint with OJK if they are not satisfied with the bank’s response to their complaints.

Key Provisions:

  • Consumer Complaints: Consumers can file a complaint with OJK if they are not satisfied with the bank’s response.
  • OJK Investigation: OJK will investigate the complaint and take action against the bank if it is found to be at fault.

Conclusion

The regulations governing banks’ relationships with their customers and other third parties aim to ensure that commercial banks operate in a fair and transparent manner, providing protection for consumers and promoting healthy competition in the financial services sector.