Investigation completed: OJK reveals criminal modus operandi at BPR Panca Dana
Jakarta (ANTARA) - The Financial Services Authority (OJK) has revealed two modus operandi of suspected banking crimes at PT Bank Perkreditan Rakyat (BPR) Panca Dana following the completion of its investigation, namely the liquidation of time deposit certificates without depositors’ knowledge and the issuance of fictitious credit.
OJK Head of the Department of Literacy, Financial Inclusion and Communication M. Ismail Riyadi stated in Jakarta on Monday that the authority had named three suspects: AK, the former president director; MM, a customer service officer; and VAS, the head of operations.
In this case, the OJK has submitted the case files to public prosecutors, which have been declared complete (P.21).
Subsequently, on Monday (23 February), OJK investigators also carried out the second phase, handing over the suspects and evidence to public prosecutors at the Depok District Prosecutor’s Office.
The investigation was a follow-up to the OJK’s tiered supervisory process, ranging from routine supervision and special examinations to inquiry and investigation, as part of the OJK’s commitment to firm and sustained law enforcement in the financial services sector.
“Based on the investigation findings, there are two modus operandi of suspected banking crimes,” said Ismail.
First, during the period from October 2018 to May 2024, suspects AK, VAS and MM allegedly deliberately caused false entries in the bank’s bookkeeping and/or documents by liquidating 96 time deposit certificates belonging to 35 depositors without their knowledge, with a total value of Rp14,024,517,848.
The funds were allegedly used for, among other things, personal gain, payment of interest on deposits that had been liquidated without the depositors’ knowledge, and replacement of deposit funds that had previously been misappropriated.
Second, during the period from May 2020 to May 2024, suspect AK as president director allegedly initiated, ordered and approved the issuance of fictitious credit for 660 credit facilities to 646 debtors.
The outstanding balance recorded as of August 2024 reached Rp32,430,827,831. The credit disbursements deviated from prevailing regulations and were allegedly intended, among other things, to maintain the bank’s non-performing loan (NPL) ratio, whilst a portion of the disbursed credit funds was used for the personal benefit of the suspect and other parties.
For these offences, the suspects have been charged under Article 49 paragraph (1) letters (a) and/or (c) of Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector, which amends Law Number 7 of 1992 on Banking, in conjunction with Article 20 letter (c) of the Criminal Code and Article 127 paragraph (1) of the Criminal Code.
The suspects face a maximum prison sentence of 15 years and a maximum fine of Rp5 billion.
In this case, OJK investigators have also seized evidence suspected to be proceeds of crime, including land and buildings in the Sawangan area of Depok, one motor vehicle, jewellery and other items of evidence.
The OJK stressed that the law enforcement process does not disrupt the bank’s operational activities and that the bank has been cooperative in assisting investigators.
The enforcement action was taken against individual management and staff members as an effort to maintain the integrity of the banking industry and protect the interests and public confidence in the financial services sector.
In handling criminal offences in the financial services sector, the OJK consistently coordinates and cooperates with law enforcement agencies, including the police and the prosecutor’s office.
“The OJK will continue to carry out law enforcement firmly, consistently and sustainably against any party suspected of committing violations in the financial services sector,” Ismail concluded.