The Indonesian Financial Services Authority (OJK) has Enacted Anti-Fraud Regulation for Banks

anti-fraud ojk

The Indonesian Financial Services Authority (OJK) has Enacted Anti-Fraud Regulation for Banks

The Indonesian Financial Services Authority (OJK) issued Anti-Fraud Strategy Regulations for Commercial Banks as stipulated in OJK Regulation Number 39 / POJK.03 / 2019. This regulation states, that the OJK requires banks to develop and implement anti-fraud strategies effectively.

“The strategy should fulfill at least four of the pillars stipulated in the OJK guidelines, these are prevention, detection, investigation, reporting, and sanctions, and monitoring, evaluation, and follow-up,” OJK wrote in article 3 paragraph 1.

In the Regulatory Explanation section, the OJK contains the objectives and steps that need to be executed by banks when implementing these pillars.

The pillar of prevention includes measures to reduce the potential risks of fraud that include anti-fraud awareness, identification of vulnerabilities, and policies regarding employees.

Furthermore, the pillar of detection, which involves steps to identify and find fraud in the bank’s business activities, includes whistleblowing policies and mechanisms, surprise examinations and supervision systems, as well as other necessary steps.

In short, the steps described in the two pillars, primarily the whistleblowing mechanism, are also included in the ISO 37001 standard for anti-bribery management. If banks have applied these standards in their policies, then this means that banks would have automatically applied some of the anti-fraud regulations set by the OJK.

Integrity is ready to assist your company in managing your company’s anti-bribery management system, including in providing whistleblowing systems and other compliance tools needed to meet compliance and good governance standards. For further information, do not hesitate to contact us today!

If a bank already has an anti-fraud strategy, they are required to adjust its strategy to follow the POJK and report the adjustment to the OJK no later than three months after the POJK is enacted.

To monitor the implementation, the OJK requires Banks to submit reports on the implementation of the strategy every semester. Banks that do not meet POJK regulations may be subject to sanctions in the form of a decrease in health ratings, a ban on the issuance of new products, and even the suspension of business activities.

The POJK, which was set on December 19, started to take effect on January 1, 2020.

Also Read:

What is Whistleblowing System?

These 4 Things Potentially Drive Fraud Eradication in the Company Ineffective

Bribery Risks II: Identifying Risks and Vulnerable Activities



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