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AML and CFT

Anti Money Laundering and Counter Financing of Terrorism

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Anti-Money Laundering and Countering the Financing of Terrorism (AML and CFT) Statement

BCA is committed to implement Anti-Money Laundering and Countering the Financing of Terrorism (AML and CFT) in accordance with:

  • Laws of the Republic of Indonesia No. 8 year 2010 concerning the Prevention and Eradication of the Criminal Act of Money Laundering,
  • Laws of the Republic of Indonesia No. 9 year 2013 concerning the Prevention and Eradication of Terrorism Financing Act,
  • OJK Regulation No. 12/POJK.01/2017 and OJK Regulation No. 23/POJK.01/2019 concerning Implementation of Anti Money Laundering and Countering the Financing of Terrorism Program in Financial Services Sector, and
  • OJK Circular Letter No. 32/POJK.03/2017 concerning Implementation of Anti Money Laundering and Countering the Financing of Terrorism Program in Banking Sector.

 

BCA’s AML and CFT policies and procedures have been approved by Board of Commissioners and Board of Directors. These policies and procedures apply to all BCA’s branch offices. The AML and CFT policies and procedures cover:

  • Periodic reporting of the AML and CFT implementation to the Board of Director and Board of Commissioner.
  • The designation of Money Laundering Risk Officer.
  • Customer Due Diligence (CDD) regarding customers’ identification, verification, and monitoring.
  • Enhanced Due Diligence (EDD) for acceptance of Politically Exposed Person (PEP) and High Risk Customer.
  • Identification and assessment of the risk of AML and CFT implementation in BCA using a risk-based approach by considering the factors related to customers, countries or geographical areas, products and services, and distribution networks.
  • Customers’ Identification and Verification by Third Parties.
  • Updating customers’ profile and supporting document
  • Rejecting/Canceling Transactions and/or Terminating Business Relationship, including prohibition to offer and maintain accounts and services to anonymous customers/shell banks.
  • Screening the customers’ data and transactions against watch lists which are issued by the competent authority, such as the List of Suspected Terrorists and Terrorist Organizations (DTTOT), and the List of Funding of Proliferation of Weapons of Mass Destruction (DPPSP), the Office of Foreign Assets Control (OFAC) List, United Nations (UN) List, European Union (EU) List, during on-boarding, transaction, and when there is any changes in those watch lists.
  • Monitoring and analyzing customers’ transactions using web-based application, namely the STIM (Suspicious Transaction Identification Model) and updating parameters that can detect suspicious transactions.
  • Reporting Suspicious Transactions Report (STR), Cash Transactions Report (CTR), and International Funds Transfer Instruction via goAML application and new customer data via Integrated Service User Information System (SiPESAT) in GRIPS application to the Indonesian Financial Transaction Reports and Analysis Center (INTRAC).
  • Maintenance of customer profile record and supporting document for minimum 5 years after the termination of business relationship.
  • Cross Border Correspondent Banking.
  • Wire Transfers.
  • Conducting compliance tests of the AML and CFT implementation at branch offices in collaboration with branch internal supervisors and related working units in Head Office in collaboration with head office internal supervisors.
  • Training and socialization for employees on AML and CFT policies and procedures continuously through the classroom training, online training, e-learning, virtual events, and internal forums.
  • Anti-Tipping Off.
  • Know Your Employee (KYE).

 

BCA’s AML and CFT implementation is subjected to regular audit by Indonesia Financial Services Authority as the bank supervisor, internal auditor, and Indonesian Financial Transaction Reports & Analysis Center (INTRAC).

USA Patriot Act

The United States government has established a new law regarding Anti-money Laundering, which is 'Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Act of 2001' (the 'USA PATRIOT Act').

Some significant terms from the USA Patriot Act is aimed at preventing money laundering and terrorist funding through corresponding foreign bank accounts that exist in American financial institutions.

In order to fulfill those requirements, American financial institutions set a regulation for all foreign banks that have or intend to have a corresponding account to fill out a standard form of certificate. The form was sent to all foreign banks that have a corresponding accounts, stipulating that those foreign banks should do the following :

  1. Proclaim that they are 'not a shell bank'.
  2. Proclaim that they will not allow 'those shell banks' to access corresponding accounts owned by American financial institutions.
  3. Identify the owner of the bank, and
  4. Identify an agent in the United States for processing requirements.

In order to fulfill the USA PATRIOT Act requirements, PT Bank Central Asia Tbk has filled in the form of cerfiticate which is valid for all accounts opened for PT Bank Central Asia Tbk by 'Covered Financial Institutions'.

Click here to see the Certificate )