As OJK Expands Requirements on Anti-Money Laundering Program, What Must be Done and How?

On 14 June 2023, the Financial Services Authority (“OJK“) issued OJK Regulation No. 8 of 2023 on the Implementation of Anti-Money Laundering (“AML”) Programs, Prevention of Terrorism Financing, and Prevention of Financing for the Proliferation of Weapons of Mass Destruction (“WMD”) in the Financial Services Sector (“POJK 8“). POJK 8 repeals the previous regulation on the same subject, namely OJK Regulation No. 12/POJK.01/2017, as amended by OJK Regulation No. 23/POJK.01/2019.

In POJK 8, OJK widens its net so that it does not cover just banks and financial institutions. Indeed, with the enactment of POJK 8, more and more businesses are expected to comply with AML regulations to protect themselves and their customers. Moreover, POJK 8 covers not just AML programs, but also proliferation of WMD.