Bank Indonesia Improves Regulation on Non-Bank Money Exchange Business Activity - Bank Sentral Republik Indonesia
Navigate Up
Sign In
November 22, 2019
In order to create good governance in money exchange business activity, Bank Indonesia reinforces and recovers Money Exchange Business Activity carried on by non-banks. Such arrangement is specified in BI Regulation Number 16/15/PBI/2014 dated 11 September 2014 on Non-Bank Money Exchange Business Activity.
Such regulation includes the aspects of business activity implementation, transaction mechanism, licensing, reporting, and supervision of Money Exchange Business Activity, or the so-called money changer. The issuance of this BI regulation is expected to be able to mitigate potential risks in various forms of misuses and crimes related to money exchange activities.
 
Upon issuance of this regulation, all non-bank companies carrying on their business activities as non-bank money changers must obtain a prior license from Bank Indonesia. Any party, which has been carrying on money exchange business activities without the approval of Bank Indonesia, must apply to obtain a license as a Non-Bank Money Exchange Provider no later than 1 January 2015. If Bank Indonesia finds any Non-Bank Money Exchange Provider without such license, Bank Indonesia may recommend to the competent authority to revoke its business license and/or terminate its business activities.
 
Money exchange business activity means sale and purchase of foreign banknotes and purchase of traveler’s cheques. Through issuance of this regulation, Bank Indonesia also recovers the function of Non-Bank Money Exchange Business Activity in such activity. Non-Bank Money Exchange Providers are prohibited from carrying on fund transfer activity or money transfer business activity. Any Non-Bank Money Exchange Provider, which has obtained its license as a Fund Transfer provider prior to the enforcement of this BI Regulation, must either separate its activity as a Non-Bank Money Exchange Provider and its Fund Transfer activity, or stop one of the activities.
 
Further information on the regulation may be checked in the BI regulation.
 
Tags:  

Survey

Is this article give you useful information?
Rate this article:
Comment:
Show Left Panel