KYC (Known Your Customer) is the principle applied in the bank to know the identity of the customer, the transaction monitor customer activities including the reporting of suspicious transactions and to prevent the use of banks as a means of money laundering by bank customers.
Principal KYC:
Identification and verification
Bank officers must perform identification and verification of data and documents provided are legitimate and valid to :
1. High Risk Product
- Product - the product for money laundry facilities
2. High Risk Customers
- State officials executant,
- Executive officials, legislative and judicial,
- Official functions and other tasks related to the main organizers countries (Bupati, Camat, Head of the village, etc.)
3. High Risk Business
- NGOs (Non Government Organitation) and the Foundation for Social
- Party Politics
- Agent / broker Real Estate
- The field of forestry companies
- Companies in Multi Level Marketing and Money game
4. High Risk Countries
- Myanmar, Nigeria
- Tax Haven Country: Cayman Island, Luxembourg, Panama, Puerto Rico, Monaco
Monitoring and Reporting
Bank staff required monitoring / monitoring of:
1. Update customer's data
- Bank staff required to update customer data or any changes at least once a year
- Can be done in different ways / phase / priority. Example: for a customer at risk, with the value of customer transactions and large
2.Transaksi customers
- Monitor and report any transactions that deviate from the customer profile (STR: Suspicious Transaction Report)
- Transactions that deviate from the profile, characteristics or practices on customer transaction
- Financial transactions that should be done with the alleged purpose to avoid the mandatory reporting of transactions performed by financial service providers.
- Financial transactions carried out or canceled is done using the property that was suspected to be derived from the crime.
- If the customer has experience as a suspect / accused money laundering cases that come from law enforcement, government institutions, and communities.
Monitor and report the Cash Transaction (CTR: Cash Transaction Report)
Financial transactions conducted in cash cumulatif in the amount of Rp 500 million or more or the equivalent value, either made in one transaction or a transaction multiple times in 1 business day. Financial transactions that are excluded:
- Transactions between the Bank
- Transactions with the Government
- Transactions with the Central Bank
- Payment of salary and pension
- Other transactions specified by the PPATK or at the request of PJK is known by PPATK
