Indonesia's Financial Regulator Issues New Bank Secrecy Regulation, Updating Rules and Expanding Scope
JAKARTA, investortrust.id - Indonesia's financial regulator has issued a new regulation on bank secrecy, updating rules that had been in place for over two decades and expanding the scope of information covered under confidentiality provisions. The regulation is designed to provide clearer guidance to law enforcement, banks, and other stakeholders on the permissible disclosure of banking information.
The Financial Services Authority (OJK) issued Financial Services Authority Regulation Number 44 of 2024 on Bank Secrecy (POJK 44/2024), following the mandate in Article 40A (2) of Law Number 7 of 1992 on Banking and Article 41A (2) of Law Number 21 of 2008 on Sharia Banking, as amended by Law Number 4 of 2023 on Financial Sector Development and Strengthening (P2SK Law). This regulation aims to provide further guidance on Bank Secrecy under OJK regulations.
This POJK also replaces the previously existing regulations on bank secrecy, specifically the Bank Indonesia Regulation Number 2/19/PBI/2000 regarding the Requirements and Procedures for Issuing Orders or Written Permits to Disclose Bank Secrecy, which was enacted over two decades ago.
The issuance of POJK 44/2024 is expected to serve as a guide for all stakeholders, including law enforcement authorities requesting bank secrecy and the banking industry in charge of disclosing such information to authorized entities, provided they meet the legal requirements.
Key Provisions of the Bank Secrecy Regulation
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Adjusted Definition of Bank Secrecy: The definition has been aligned with the P2SK Law, changing from the terminology "everything" to "information." A new term, "Investor Customers and Their Investments," has been added, which was not included in the previous bank secrecy definition.
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Exemptions from Bank Secrecy: Exemptions are in line with the P2SK Law, including:
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Assisting with mutual legal assistance in criminal matters;
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The needs of other agencies for national governance purposes and public interest as per their legal mandates;
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Implementation of reciprocal international agreements;
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Monetary, macroprudential, and payment system duties by Bank Indonesia, and tasks related to deposit insurance and resolution by the Deposit Insurance Corporation.
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Obligations for Banks and Affiliates: Banks and affiliated entities are required to maintain the confidentiality of customer and investor information. Banks must also have internal procedures for disclosing bank secrecy and keep documentation of all requests and disclosures.
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Mechanism for Disclosure of Bank Secrecy: A mechanism for disclosing bank secrecy is now established, including those made through the OJK or directly to the banks. This provision addresses limits on disclosure purposes and sets out general procedures for inter-bank information exchanges, which were not regulated in the previous regulation.
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Revocation of Previous Regulation: The Bank Indonesia Regulation Number 2/19/PBI/2000 is revoked.
This regulation took effect on December 27, 2024. The OJK will continue to monitor and evaluate its implementation to ensure that it is effective and provides optimal benefits to all parties involved. Information on the POJK, FAQs, socialization materials, and a summary of its provisions can be accessed through the SIKEPO application.
The SIKEPO platform can be accessed via a browser at sikepo.ojk.go.id or through the mobile app, available for download on Google Play Store and the Apple App Store.