BI faces a dilemma over banking secrecy code
BI faces a dilemma over banking secrecy code
JAKARTA (JP): Bank Indonesia (BI) deputy governor Achjar Iljas
said on Monday the central bank had a strong commitment to root
out corruption, but warned that breaching the bank secrecy code
for the sake of fighting corruption would damage confidence in
the country's banking sector.
He said the central bank would allow an investigation into a
bank deposit only if it was done through an "appropriate
mechanism".
"If we don't play by the law, people will be affected and lose
confidence in the banking sector which in turn may trigger
massive capital outflow," he said on the sidelines of a meeting
with Bappertal, a non-governmental reform watchdog.
Bappertal said Indonesia had been battered by rampant
corruption by government officials and called on the central bank
not to use the bank secrecy code to protect corrupt officials.
Bappertal said the disclosure of details of Attorney General
Andi Ghalib's bank account would not cause confidence in the bank
concerned to tumble.
"It's too premature to say that the leaking of details of the
bank account will hurt confidence in domestic banks. On the
contrary, rooting out corruption will boost the confidence of
businesspeople and foreign investors (in the economy) who often
have been blackmailed by government officials," the NGO said.
Andi Ghalib is currently under fire after the Indonesian
Corruption Watch announced at a media conference that it had
authentic bank documents showing that Ghalib had received some Rp
13 billion from businesspeople.
Some of the businesspeople are under investigation by Ghalib's
office for suspected banking violations.
Ghalib denied any wrongdoing, saying the money deposited in
Bank Lippo was received as a donation for the Indonesian
Wrestling Association which is under his chairmanship.
"We also have a commitment to root out corruption, but we also
have to adhere to the law," he said, citing Banking Law No.
10/1998.
The banking law, which was approved in November, stipulates
that the liability side (deposits) of a bank is protected by the
secrecy code.
Achjar said people violating the secrecy code, including Bank
Indonesia officials, could be sentenced to between one year and
four years in prison and fined between Rp 10 billion and Rp 200
billion.
He said that under certain circumstances the Bank Indonesia
governor would allow the disclosure of details of a depositor's
bank account.
Achjar said the minister of finance could ask for a disclosure
for tax audit purposes.
He added that the police, the Attorney General's Office and
the Supreme Court could also ask for disclosure for the purpose
of a criminal court case.
"But this can only be done if a suspect has been named," he
said.
President B.J. Habibie has so far declined to dismiss Ghalib
from his post to allow a police investigation of his alleged
wealth.(rei)