The Financial Services Authority (Otoritas Jasa Keuangan “OJK”) has issued Financial Services Authority Regulation No. 44 of 2024, effective from 27 December 2024, on Bank Secrecy (“OJK Regulation No. 44/2024”). This regulation is issued to facilitate the updated regulations concerning bank secrecy, as regulated in Law No. 4 of 2023 concerning the Development and Strengthening of Financial Sector. supersedes the previous regulation governing bank secrecy, namely Bank Indonesia Regulation No. 2 of 2000 on the Requirements and Procedures for Granting Written Orders or Permits to Disclose Bank Secrecy (“BI Reg 2/2000”), which is officially revoked after the issuance of OJK Regulation No. 44/2024.
Scope of the Regulation
OJK Regulation No. 44/2024 serves as an implementing regulation for the bank secrecy provisions contemplated in Law No. 7 of 1992 on Banking and Law No. 21 of 2008 on Sharia Banking, as lastly amended with Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“Banking Law”). Generally, banks in Indonesia are mandated to adhere to the bank secrecy provisions stipulated in the Banking Law.
In essence, OJK Regulation No. 44/2024 provides comprehensive guidelines for banks to maintain and safeguard bank secrecy while simultaneously regulating the conditions and mechanisms under which banks may choose to exclude or disclose such information. The regulation applies to Commercial Banks (Bank Umum), Rural Banks (Bank Perkreditan Rakyat), and Sharia Rural Banks (Bank Perkreditan Rakyat Syariah).
New Provisions: Changes Implemented by OJK Regulation No. 44/2024
OJK Regulation No. 44/2024 introduces amendments to the provisions on exemptions from bank secrecy obligations that previously regulated where it expands the exemptions criteria. According to Article 3 of OJK Regulation No. 44/2024, banks may exclude their obligation to maintain the confidentiality of customer information under the following circumstances:
- Judicial interests in civil cases that involved the bank and the customer;
- Judicial interests in criminal cases;
- The request of the curator or the liquidator based on the court’s decision;
- Request, approval, or power of attorney of the depositor customer and/or investor customer made in writing;
- Request of the legal beneficiary of the deceased depositor customer and/or investor customer;
- Exchange of inter-bank information;
- Fulfilling mutual assistance in criminal matters;
- Request for financial information for tax purposes based on the provisions of laws and regulations;
- The interests of the other authority for the purpose of state administration at the central level and public interest;
- The interests of the implementation of tasks in the field of monetary, macroprudential, and payment systems by Bank Indonesia;
- The interests of the implementation of duties in the field of deposit insurance and resolution by the Deposit Insurance Corporation (Lembaga Penjamin Simpanan);
- Implementation of cooperation agreements between authorities that have been signed reciprocally; and
- Settlement of receivables that have been submitted to the State Receivables Affairs Committee (Panitia Urusan Piutang Negara).
As previously mentioned, OJK Regulation No. 44/2024 expands the criteria for exemptions. Originally, only points a, b, d, e, f, h, and m were regulated under BI Regulation No. 2/2000.
Exception Procedures
OJK Regulation No. 44/2024 introduces several provisions governing the exemption of bank secrecy. It prescribes detailed procedures for each ground on which bank secrecy may be exempted. In general, every individual or entity seeking to disclose bank secrecy must obtain approval from the OJK, except for the exemptions regulated under Article 3 of OJK Regulation No. 44/2024 points a, c, d, e, f, h, j, and k – these exemptions do not require written approval from the OJK.
OJK Regulation No. 44/2024 also requires banks to have internal procedures governing the disclosure of information to interested parties.
Conclusion
The Financial Services Authority has introduced OJK Regulation No. 44/2024, which brings significant changes to Indonesia’s bank secrecy regulations. The regulation provides a comprehensive framework for the request of disclosure, detailing the procedures in a meticulous manner. In response to the evolving economic challenges, international cooperation efforts, and the growing prevalence of information technology in criminal activities, this regulation seeks to strike a delicate balance between the protection and disclosure of bank secrecy, aligning it with the changing circumstances.
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MetaLAW, Legal Consultant, Jakarta, Indonesia
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