The Board of Governors of Bank Indonesia has introduced an implementing regulation that provides further guidance on the application of anti-money laundering (“AML”) measures under Regulation of the Member of the Board of Governors Number 15 of 2025* (the “Regulation”), which will impact how companies manage financial transactions. The impact arises as financial service providers supervised by Bank Indonesia (the “FSP”) are now required to strengthen their AML controls through written policies, risk-based management, and detailed customer due diligence.
In practice, the Regulation requires FSPs to verify the identity of prospective customers, existing customers, parties acting on their behalf, and/or the beneficial owner based on reliable and independent data sources. It also requires FSPs to understand the purpose of the business relationship or transaction and the source of funds to ensure legitimacy and to confirm there is no link to money laundering offences.
Given the heightened controls, companies relying on FSPs should expect more detailed requests for documents and closer checks on ownership and the flow of funds. It is also important to recognise that operational continuity is better protected when companies engage compliant FSPs that meet regulatory expectations and maintain effective AML safeguards.
*Regulation of the Member of the Board of Governors Number 15 of 2025 on the Implementation of Anti-Money Laundering, Countering the Financing of Terrorism, and Countering the Financing of the Proliferation of Weapons of Mass Destruction for Parties Regulated and Supervised by Bank Indonesia which took effect on 30 June 2025