BI faces a dilemma over banking secrecy code<\/p>\n
JAKARTA (JP): Bank Indonesia (BI) deputy governor Achjar Iljas
\nsaid on Monday the central bank had a strong commitment to root
\nout corruption, but warned that breaching the bank secrecy code
\nfor the sake of fighting corruption would damage confidence in
\nthe country's banking sector.<\/p>\n
He said the central bank would allow an investigation into a
\nbank deposit only if it was done through an \"appropriate
\nmechanism\".<\/p>\n
\"If we don't play by the law, people will be affected and lose
\nconfidence in the banking sector which in turn may trigger
\nmassive capital outflow,\" he said on the sidelines of a meeting
\nwith Bappertal, a non-governmental reform watchdog.<\/p>\n
Bappertal said Indonesia had been battered by rampant
\ncorruption by government officials and called on the central bank
\nnot to use the bank secrecy code to protect corrupt officials.<\/p>\n
Bappertal said the disclosure of details of Attorney General
\nAndi Ghalib's bank account would not cause confidence in the bank
\nconcerned to tumble.<\/p>\n
\"It's too premature to say that the leaking of details of the
\nbank account will hurt confidence in domestic banks. On the
\ncontrary, rooting out corruption will boost the confidence of
\nbusinesspeople and foreign investors (in the economy) who often
\nhave been blackmailed by government officials,\" the NGO said.<\/p>\n
Andi Ghalib is currently under fire after the Indonesian
\nCorruption Watch announced at a media conference that it had
\nauthentic bank documents showing that Ghalib had received some Rp
\n13 billion from businesspeople.<\/p>\n
Some of the businesspeople are under investigation by Ghalib's
\noffice for suspected banking violations.<\/p>\n
Ghalib denied any wrongdoing, saying the money deposited in
\nBank Lippo was received as a donation for the Indonesian
\nWrestling Association which is under his chairmanship.<\/p>\n
\"We also have a commitment to root out corruption, but we also
\nhave to adhere to the law,\" he said, citing Banking Law No.
\n10\/1998.<\/p>\n
The banking law, which was approved in November, stipulates
\nthat the liability side (deposits) of a bank is protected by the
\nsecrecy code.<\/p>\n
Achjar said people violating the secrecy code, including Bank
\nIndonesia officials, could be sentenced to between one year and
\nfour years in prison and fined between Rp 10 billion and Rp 200
\nbillion.<\/p>\n
He said that under certain circumstances the Bank Indonesia
\ngovernor would allow the disclosure of details of a depositor's
\nbank account.<\/p>\n
Achjar said the minister of finance could ask for a disclosure
\nfor tax audit purposes.<\/p>\n
He added that the police, the Attorney General's Office and
\nthe Supreme Court could also ask for disclosure for the purpose
\nof a criminal court case.<\/p>\n
\"But this can only be done if a suspect has been named,\" he
\nsaid.<\/p>\n
President B.J. Habibie has so far declined to dismiss Ghalib
\nfrom his post to allow a police investigation of his alleged
\nwealth.(rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bi-faces-a-dilemma-over-banking-secrecy-code-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}