Regulation No. 5/23/PBI/2003 Concerning Implementation of Know Your Customer Principles For Rural Banks

Indonesia

(enacted in 2003)

Regulation No. 5/23/PBI/2003 Concerning Implementation of Know Your Customer Principles For Rural Banks, issued by Bank Indonesia, stipulates the implementation of know your customer principles for rural banks in Indonesia.

This regulation consists of the following:

  • Chapter I General Regulation: This section establishes the obligation to apply know your customer (KYC) principles, and includes regulations on who is responsible for applying and monitoring KYC policies and procedures within rural banks;
  • Chapter II The Policy for Accepting and Identifying Customers: This section outlines what information must be gathered and how it is to be gathered;
  • Chapter III Monitoring Customer Account and Transactions: This section includes regulations on keeping a recording system and protecting client information;
  • Chapter IV Reporting: Rural banks are required to deposit copies of their policies with Bank Indonesia and must report suspicious transactions to the Center for Reporting and Analyzing Financial Transactions (PPATK); 
  • Chapter V Additional Stipulation: This section stipulates that the regulation applies to rural banks, and to transactions over a certain amount;
  • Chapter VI Sanction: This section references administrative sanctions outlined in Act Number 10 of 1998;
  • Chapter VII Shift Stipulation: This section states that Rural Banks must be in compliance within six months after the promulgation of the regulation; and
  • Chapter VIII Closing Stipulation: This stipulation exempts certain very old rural banks and gives the regulation immediate effect otherwise.

DISCLAIMER: The attached document is an unofficial translation of Regulation No. 5/23/PBI/2003 Concerning Implementation of Know Your Customer Principles For Rural Banks. An official translation is unavailable.