Monique Handa Shafira, Jakarta – The Financial Services Authority (OJK) has issued Regulation No. 44 of 2024 on Bank Secrecy (POJK 44/2024), introducing clearer procedures for disclosing confidential banking information. The regulation aligns with Law No. 4 of 2023 on Financial Sector Development and Strengthening (UU P2SK).

For banks, the regulation imposes stricter obligations to protect customer information while providing clearer guidelines for handling disclosure requests. Banks must establish internal procedures, document all disclosures, and comply with specific mechanisms outlined by OJK.

For law enforcement, POJK 44/2024 simplifies access to banking information under legally permitted circumstances, such as for criminal investigations or public interest purposes. It also clarifies exceptions to bank secrecy, enabling structured cooperation between banks and authorities.

"The issuance of POJK 44/2024 is expected to serve as a guideline for all stakeholders, including law enforcement officers requesting bank secrecy information and banking institutions tasked with fulfilling such requests while adhering to legal requirements," OJK stated in an official release on Tuesday.

Key provisions of the regulation include:

1. Revised Definitions
The definition of "Bank Secrecy" has been updated to align with UU P2SK terminology. A new term, "Investor Customers and Their Investments," has also been introduced.

2. Exemptions to Bank Secrecy
Exceptions are allowed under specific conditions, such as:

Mutual assistance in criminal matters.
Supporting state administration or public interest in line with legal mandates.
International agreements with reciprocal terms.
Bank Indonesia's tasks in monetary policy, macroprudential regulation, and payment systems.
Deposit Insurance Corporation's (LPS) responsibilities in deposit guarantees and resolutions.

3. Bank Obligations
Banks and affiliated parties must maintain confidentiality regarding customer deposits and investments. They are also required to establish internal procedures for handling disclosure requests and document all information-sharing activities.

4. Disclosure Mechanisms
The regulation introduces mechanisms for direct requests to banks, in addition to those submitted through OJK. It provides specific objectives and procedures for interbank information exchanges.

5. Repeal of Previous Regulations
The regulation repeals Bank Indonesia Regulation No. 2/19/PBI/2000, streamlining the legal framework for handling bank secrecy disclosures.

Starting December 27, 2024, OJK will actively monitor and evaluate the implementation of POJK 44/2024 to ensure its effectiveness and benefits for all stakeholders.

Source: https://jakartaglobe.id/business/banks-face-stricter-obligations-under-ojks-new-bank-secrecy-rule