The Financial Services Authority (“OJK”) has issued new regulation on bank secrecy*, revoking the previous regulation**. The new regulation serves as a guideline for all stakeholders, ensuring greater clarity and alignment with the development and strengthening of the financial sector law.
Under the previous regulation, bank secrecy was broadly defined as “everything” related to banking activities. The new regulation, however, narrows and refines this definition, specifying that bank secrecy pertains strictly to “information”. This clarification enhances legal certainty by explicitly defining the scope of confidentiality obligations in the banking sector.
The regulation introduces additional circumstances under which banking secrecy can be disclosed, including:
- requests from court-appointed curators for asset liquidation;
- Bank Indonesia’s duties, including monetary policy implementation, macroprudential oversight, and payment system operations; and
- the Deposit Insurance Corporation (Lembaga Penjamin Simpanan or LPS) in performing its regulatory functions.
These exceptions establish a more structured framework for disclosure while balancing confidentiality obligations with the need for transparency in financial regulation.
The new regulation also outlines clearer procedures for secrecy disclosure. There are now two mechanisms for disclosure, disclosure requiring OJK approval and direct requests to banks without OJK approval.
*Financial Services Authority Regulation Number 44 of 2024 regarding Bank Secrecy.
**Bank Indonesia Regulation Number 2/19/PBI/2000 regarding Requirements and Procedures for Giving Written Orders or Permission to Reveal Bank Confidentiality.
