The Financial Services Authority of Indonesia (OJK) announced consultation on cyber-security guidelines for commercial banks, along with the guidelines on use of IndONIA (part of the benchmark reforms), and guidelines for implementation of anti-money laundering and counter-terrorist financing (AML/CFT) programs for crowdfunding service providers.
Below are the key highlights of these publications:
- The proposed guidelines on cybersecurity of commercial banks cover general provisions, risk assessment, implementation of risk management and cyber-resilience process, cybersecurity maturity level assessment, cybersecurity risk levels and testing, units/functions handling cybersecurity, and cyber incident reporting. The consultation ends on October 31, 2022.
- The guidelines for using IndONIA, which the National Working Group on Benchmark Reform have issued, address use of IndONIA as a reference for IDR (Indonesian Rupiah) interest rates in financial products. The publication addresses the rationale behind the choice of recommended reference for IDR interest rates based on IndONIA and presents examples of their use in various financial products. The guideline will enable the working group in initiating, preparing, and overseeing the process of reforming IDR interest rate reference so that the transition to interest rate reference reform in global financial markets can run smoothly. In line with the reform of interest rate reference in global financial markets, the working group recommends an alternative non-overnight IDR reference rate (ARR), which is formed based on IndONIA and calculated according to the international best practice, including the International Organization of Securities Commissions (IOSCO) Principles. The Bank Indonesia is expected to publish the Compounded IndONIA and IndONIA Index, in early of 2023, to assist all economic actors and relevant stakeholders in using the IDR ARR recommendations and preparing for the transition from JIBOR to IndONIA.
- The AML/CFT guidelines for crowdfunding service providers set out implementation instructions, covering general provisions related to the definition, description, and topology of money laundering and terrorism financing as well as the scope of application in terms of active supervision, policies and procedures, internal control, management information system, and human resources and training for successful implementation of AML/CFT programs.
Related Links (in Indonesian)
Keywords: Asia Pacific, Indonesia, Banking, Regtech, AML CFT, Crowdfunding Service Providers, Benchmark Reforms, IndONIA, Interest Rate Bechmarks, Alternative Reference Rates, Cyber Risk, Cyber Incident Reporting, Cyber Testing, OJK
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
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