OJK Mandates Banks to Implement Anti-Fraud Strategies

The Financial Services Authority (OJK) continues to strengthen its supervision and risk mitigation efforts to prevent fraud in the banking industry.

This strengthening is carried out through the implementation of anti-fraud strategies that include internal supervision, strengthening governance, and utilising information systems to track perpetrators in the financial services sector.

The Head of Banking Supervision at OJK, Dian Ediana Rae, said that OJK consistently monitors banks’ integrated anti-fraud strategies through offsite and onsite supervision.

According to him, OJK has regulated the implementation of risk management and anti-fraud strategies for financial services institutions (LJK) through the latest regulations, namely OJK Regulation (POJK) Number 12 of 2024 concerning the Implementation of Anti-Fraud Strategies for Financial Services Institutions.

In this regulation, Dian said that LJKs are required to prepare and implement anti-fraud strategies consisting of four main pillars. These four pillars include prevention, detection, investigation, reporting and sanctions, as well as monitoring, evaluation, and follow-up.

“Financial Services Institutions (LJK) are obliged to prepare and implement anti-fraud strategies consisting of 4 (four) pillars including prevention, detection, investigation, reporting, and sanctions, as well as monitoring, evaluation, and follow-up,” said Dian.

Not only that, socialisation regarding anti-fraud policies must also be carried out to external parties.

“In addition, LJKs are also required to carry out education and competency development for internal parties, as well as conduct socialisation of the anti-fraud policy in question to external parties,” said Dian.

Dian explained that the implementation of anti-fraud strategies in banking includes various control measures. These include identifying vulnerabilities, know your employee policies, and implementing whistleblowing mechanisms.

“The implementation of anti-fraud strategies carried out by banks includes, among others, identifying vulnerabilities, know your employee policies, and implementing whistleblowing, including steps to carry out investigations, reporting, and imposing sanctions,” said Dian.

OJK is also preparing follow-up measures in the event that perpetrators of fraud originating from financial services institutions are found.

In this case, supervisors and related LJKs can report the perpetrators to be recorded in the Financial Sector Perpetrator Information System or Sipelaku.