Is there a limit to the number of accounts in offshore banks (not foreign banks that have representatives in Indonesia) that an Indonesian company can have? Or are there certain restrictions for Indonesian companies to have accounts in offshore banks?
DAFTAR ISI
INTISARI JAWABAN
Basically, there are no specific provisions regarding restrictions on the number of accounts in offshore banks that can be owned by Indonesian entities. The restriction is more on the technical management and use of the deposited funds.
If the funds will be transferred back to Indonesia or funds from Indonesia will be transferred to the offshore bank account, it is subject to certain regulations. What are the regulations and how do they read?
Please take a look at the review below for a further explanation.
This article is an updated version of the article entitled Regulations on Overseas Accounts, written by Maria Astri Yunita, S.H., M.H. and was published on Tuesday, 12 January 2016.
All legal information available on Klinik hukumonline.com has been prepared for educational purposes only and is general in nature (read the complete Disclaimer). In order to obtain legal advice specific to your case, please consult with Justika Partner Consultant.
Transfer of Funds to and from Overseas
Basically, in our opinion, there are no specific provisions regarding restrictions on the number of accounts in offshore banks that may be owned by Indonesian entities. According to BI Regulation 14/23/PBI/2012, Bank Indonesia has the authority to stipulate a maximum limit on the nominal value of fund transfers from and to abroad that may be conducted through Operators that are in the form of non-bank business entities.[1]
In addition, the restrictions are more on the technical management and use of the deposit funds. If the funds will be transferred back to Indonesia or funds from Indonesia will be transferred to an offshore bank account, it is subject to the regulations of the Financial Transaction Reports and Analysis Center (Pusat Pelaporan dan Analisis Transaksi Keuangan/ "PPATK") as mandated in PPATK Regulation 1/2021. Financial Services Providers or Organizers (Penyedia Jasa Keuangan/ “PJK") are required to submit reports to PPATK, among others, on financial transactions transferring funds to and from abroad to prevent and eradicate criminal acts of money theft and criminal acts of financing terrorism.[2]
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Financial Services Providers that provide financial transaction services for the transfer of funds to and from overseas, including remittance services, are required to submit financial transaction reports on the transfer of funds to and from overseas to PPATK.[3]
Financial Services Providers that provide fund transfer financial transaction services from and to overseas shall include the initial sender organizer and the end recipient organizer,[4] in the form of banks and non-bank Indonesian incorporated entities.[5]
Reports that must be submitted by banks and or Indonesian legal entities in the form of fund transfer orders for the interest of service users,[6] which are received and/or sent through:[7]
a written order;
app for fund transfer from and to abroad; and/or
electronically including automated teller machines, phone banking, internet banking, SMS banking, and/or other electronic means.
The fund transfer applications from and to overseas referred to above consist of:[8]
app obtained from SWIFT;
app obtained through a cooperation with fund transfer service provider; and/or
other apps used by PJK for fund transfers from and to abroad.
Bank Obligations in Transferring Funds from and to Overseas
The amount of funds deposited in the account can also be analyzed and reviewed at any time based on the provisions of the laws and regulations of each country regarding anti-money laundering and the internal provisions of each bank regarding CDD or Customer Due Diligence, which is an activity in the form of identification, verification, and monitoring that are carried out by PJK to ensure that a transaction conforms to the profile, characteristics and/or transaction patterns of a Prospective Customer, Customer or WIC.[9]
This is further regulated in OJK Regulation 8/2023 that banks as Financial Services Providers are required to have compliance management arrangements for the implementation of Anti-Money Laundering and Prevention of Terrorism Funding programs, including by appointing compliance officers at the management level.[10] As part of the compliance management arrangements for implementing Anti-Money Laundering and Prevention of Terrorism Funding programs, banks as Financial Services Providers are required to establish special work units and/or appoint officials responsible for implementing these programs, at the head office and branch offices.[11]
The person in charge of implementing the Anti-Money Laundering and Prevention of Terrorism Funding program has the task, among others, conducting an evaluation of the results of monitoring and analysis of customer transactions in order to ascertain the presence or absence of any suspicious financial transactions, cash financial transactions, and/or funds transfer financial transactions from and to abroad[12] and prepare a report on suspicious financial transactions, cash financial transactions, and/or funds transfer financial transactions from and to abroad.[13]
In addition, the person in charge of implementing the Anti-Money Laundering and Prevention of Terrorism Funding program has the authority to report suspicious financial transactions, cash financial transactions, and/or funds transfer financial transactions from and to abroad including those carried out by the Board of Directors, Board of Commissioners, and/or parties affiliated with the Board of Directors or Board of Commissioners, directly to the Financial Transaction Reports and Analysis Center or PPATK.[14]
If it is deemed unreasonable and suspicious/not in accordance with the customer's profile or the customer is deemed to have a profile that is suspicious, the bank is obliged to refuse business relations with prospective customers, refuse transactions, and/or close business relations with customers.[15]
If the suspected transaction is related to Money Laundering Crime or Terrorism Funding Crime, and the Financial Services Providers believe that the CDD process will violate the anti-tipping-off provisions, the Financial Services Providers must stop the CDD procedure and report the suspicious financial transaction to PPATK.[16]
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