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Prudential Banking Instruments
Prudential Banking Component will process information received from Internal
Control and Audit Components to determine the following indicators:
- Implementation of international best practices for the company’s
financial transaction, government agencies and individuals involved in the
deforestation process and change of forest area function and forest area
- Customers financial transaction profile
- Analysis cash transaction report.
- Red flags for suspicious financial transaction
- Suspicious financial transaction
1. Bank Indonesia
2. Financial Institutions
Indonesia's web portal on Know Your Customer Principle and Anti Money
- Bank Indonesia Regulation Nr.
3/10/PBI/2001 18 June 2001 Concerning The Implementation of Know Your
Edaran Gubernur Bank Indonesia No.
tentang Penilaian dan
Pengenaan Sanksi atas Penerapan Prinsip Mengenal Nasabah dan Kewajiban Lain
Terkait dengan Undang-undang tentang Tindak Pidana Pencucian Uang (Reviewing
and Sanctioning on Implementing Know Your Customer Principle and Other
Related Duty in Anti Money Laundering Law)
International Regulations/Best Practices
- The Equator Principles
Initially this principle was initiated by a number of small banks, with
IFC, at a meeting in London, October 2002.
The theme of the meeting was discussing one general standard in relation to
environment and social policy when dispensing financial credit for any kind of
industry and can be adopted globally. The outcome of the meeting was issuance of
Equator Principle which was launched on 4 June 2003. Until June 2006, there
are 41 bank has adopted, increasing from 10 banks when this initiative has just
On 6 July 2006,
revised edition of Equator Principle was launched to adjust them
with document amendment of 'Performance Standards' as produced by IFC on 21
February 2006. Therefore, revision of Equator Principle has similarity with
Environmental and Social documents in "Performance Standards" developed by IFC.
Politically Exposed Persons [PEPs]
PEPs principle first time came into existence as a response to the Ferdinand
Marcos and his wife scandal case who kept money from corruption activity in
Swiss banks. The fact that the money is illegal has ruined Swiss banks
reputation. The effect was the Swiss bankers then started to pay attention to
and created list of politically important and strong people in foreign countries
both those who have become their customers and those who have not. The use of PEPs principle is still limited and not standardized.
The use of PEPs principle becomes stronger corresponds to the enactment of
Patriot Act, October 2001 as the consequences of terrorist attack on WTC twin
tower in New York, 11 September 2001. PEPs handling is included in Section 312
of the Patriot Act. PEPs is used as an instrument.........[continue......]