Financial Services Authority, Jakarta, July 29, 2016: The Anti-Money Laundering and Terrorism Financing Prevention (APU-PPT) Group of the Financial Services Authority (OJK) in partnership with the International Monetary Fund (IMF) held a Training Workshop on Anti-Money Laundering/Countering Financing of Terrorism (AML/CFT) Risk-Based Supervision from July 28, 2016 to July 29, 2016 at the OJK Institute, Jakarta.
The event was attended by representatives of the working unit that focused on banking supervision and regulation, and capital market and non-bank institution supervision. The workshop was training for supervisors about concept of risk-based approach (RBA) tools for supervision of anti-money laundering and terrorism financing prevention (APU-PPT) program implementation or for assessments of APU-PPT risks. The Task Force for Prevention against Money Laundering and Terrorism Financing Criminal Acts in the Financial Services Sector has been conducting the assessment with help from the IMF's Technical Assistance Team since 2015.
It is essential to adopt the risk-based approach to the APU-PPT program to make supervision more effective and efficient given that there is limited human resources available, especially towards achieving the mandatory First Recommendation of the Financial Action Task Force (FATF) concerning implementation of risk assessment and application of such approach. Objectives of the risk-based approach are as follows:
By adopting the risk-based approach, supervision of the APU-PPT program is carried out by the following steps: (a) weighing APU-PPT risks (not limited to operational risks only); (b) frequency of audits and number of auditors are adjusted to risk levels of the financial services companies to be audited; (c) audit periods are focused on products, services, delivery channels, types and nature of high-risk transactions and customers and geographical zones; and (d) reports of such audits are made separately from those on other risk areas.
During the Training Workshop on AML/CFT Risk-Based Supervision, there were also exposé and discussions on development of risk-based supervision tools in banking and capital market industries, and exposé on experiences of implementing the risk-based approach by industry players that were represented by Bank Central Asia (BCA) and CIMB Sekuritas.
The concept of risk-based approach tools in the banking sector covers the following areas:
Further, the concept of risk-based approach tools in the capital market sector consists of:
Delivery channels refer to number of branches owned by securities companies.
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