INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Monic N. Devina, D. Meitiara P. Bakrie and Nesya Ashari, ABNR Counsellors at Law
• criminal proceedings; • civil lawsuits between banks and customers; • interbank information exchange; and • inheritance. Moreover, banks and other financial institutions (play - ers in capital markets, insurance, pension funds, finance companies and others) are prohibited from providing third parties with data or information on their own customers except where: • customers provide written consent; or • the provision of the data or information is required by law. Open Banking Implementation In light of banking secrecy provisions, banks, in par - ticular, face challenges in implementing open bank - ing. Some major banks have launched an application programming interface (API), while others are still adapting to customer behaviour that is moving away from physical cash payments and towards a digital economy culture. The market has seen some collabo - rative approaches between banks and fintechs; there are numerous instances of banks that have opened up their APIs to allow their systems to be integrated with technology providers and to facilitate financial transactions. As part of a drive to encourage open banking, the BI prioritises standardisation and implementation of the open API to enable the interlinking of payment ser - vice providers and other players; this is implemented under Regulation of the Board of Governors No 23/15/ PADG/2021 on the Implementation of the National Standard for Open Application Programming Interface in Payments (“BI Reg 23/15”). The BI developed SNAP along with the industry stakeholders to cover: • the technical and security standards, data stand - ards and technical specifications, as published on the developer’s site; and • the SNAP governance guidelines for interconnect - ed and interoperable open API payments. In implementing open banking, customer data is the main concern. The BI addresses customer data protection (including customer consent and dispute
resolution), risk management and technical aspects as issued under Regulation of the Board of Governors No 20 of 2023 on Procedures for the Implementation of BI Consumer Protection: BI Regulation No 3 of 2023 on BI Consumer Protection.
12. Fraud 12.1 Elements of Fraud
Currently, only the banking and insurance sectors already have umbrella laws pertaining to fraud – name - ly, OJK Regulation No 12 of 2024 on the Implemen - tation of Anti-Fraud Strategies for Financial Services Institutions (“OJK Reg 12”), and OJK Circular Letter No 46/SEOJK.05/2017 Concerning Fraud Control and Implementation of Anti-Fraud Strategies and Anti- Fraud Strategy Reports for Insurance Companies, Sharia Insurance Companies, Reinsurance Compa - nies, Sharia Reinsurance Companies or Sharia Units (“OJK CL 46”). The definition of fraud provided by the regulation is as follows: “an act of deviation and/or omission that is deliber - ately carried out to deceive, cheat, or manipulate a financial service institution, consumers or other par - ties, which occurs in the environment of and/or facili - ties used by the financial services institution so that the financial services institution, consumers, or other parties suffer losses and/or fraud perpetrators and/ or other parties secure benefits directly or indirectly.” Furthermore, the OJK is currently preparing a regula - tion for the implementation of an anti-fraud strategy, which will apply to all financial service sectors, includ - ing fintech. However, there is no indication from public sources as to when the regulation will be issued. Pre - dicting the timeline for the issuance of implementing regulations is challenging, given the observed incon - sistency in practice. 12.2 Areas of Regulatory Focus In practice, regulators are likely to focus on any sort of fraud that is reported by the public. As the primary regulator of Indonesia’s financial services sector, the OJK, through the EIFA Task Force, is increasingly
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