Guidelines on Cash Financial Transaction Reports and Their Reporting Procedures for Financial Dealers

Transcription

1 Attachment to the Decision of the Head of the Indonesian Financial Transaction Reports and Analysis Center Number: 3/1/KEP.PPATK/2004 Guideline IV FIRST EDITION INDONESIAN FINANCIAL TRANSACTION REPORTS AND ANALYSIS CENTER (PPATK) Guidelines on Cash Financial Transaction Reports and Their Reporting Procedures for Financial Dealers

2 INDONESIAN FINANCIAL TRANSACTION REPORTS AND ANALYSIS CENTER (PPATK) GUIDELINE IV Guidelines on Cash Financial Transaction Reports and Their Reporting Procedures for Financial Dealers First Edition Indonesian Financial Transaction Reports and Analysis Center (PPATK) Tel: Fax: Jakarta, 2004

3 Table of Contents CHAPTER 1: INTRODUCTION _ 1 CHAPTER 2: DEFINITION OF CASH FINANCIAL TRANSACTIONS 3 CHAPTER 3: EXEMPTED CASH FINANCIAL TRANSACTIONS 7 CHAPTER 4: PROCEDURES FOR FILLING OUT CASH FINANCIAL TRANSACTION REPORTING FORM 9 A. Manual Reporting 9 B. Electronic Reporting 12 CHAPTER 5: REPORTING PROCEDURES 13 A. Manual Reporting B. Electronic Reporting 13 CHAPTER 6: REPORT SUBMISSION ADDRESS 15 A. Manual Reporting 15 B. Electronic Reporting 15 CHAPTER 7: REPORT SUBMISSION TIME LIMIT 16 CHAPTER 8: CONFIDENTIALITY 17 CHAPTER 9: MISCELLANEOUS 18 ATTACHMENT ATTACHMENT 2 22 i

4 TRANSACTION REPORTS AND THEIR REPORTING PROCEDURES FOR Chapter 1 CHAPTER 1: INTRODUCTION Based on Article 13 paragraph 1 sub-paragraph b of Law No. 15 Year 2002 regarding Criminal Act of Money Laundering ( TPPU Law ), Financial Dealers ( PJK ) such as banks, financing institutions, securities companies, mutual fund managers, custodians, trust agents, custody and settlement institutions, foreign currency traders, pension funds, and insurance companies shall be obligated to report Suspicious Financial Transactions to the Indonesian Financial Transaction Reports and Analysis Center (the PPATK ) concerning Financial Transaction Conducted in Cash in a cumulative amount of Rp.500,000, (five hundred million rupiah) or more or of equivalent foreign currency, whether conducted in one time transaction or several time transactions in 1 (one) business day. The above-mentioned transaction is called as Cash Transaction Report (CTR), hereinafter referred to as Cash Financial Transaction Report. With regard to the above, based on Article 13 paragraph (7) and Article 26 sub-paragraph (e) of TPPU Law, the PPATK has the duty, among other things, of issuing guidelines for the PJK in the context of the implementation of Cash Financial Transaction reporting. These guidelines are issued in the context of providing comprehension and reference for the PJK concerning the definition of Cash Financial Transactions and their appropriate and accurate reporting methods. These guidelines will describe the following matters: 1. Definition of Cash Financial Transaction 2. Exempted Cash Financial Transaction 1

5 3. Procedures For Filling Out Cash Financial Transaction Reporting form 4. Reporting Procedures 5. Report Submission Address 6. Report Submission Time Limit 7. Confidentiality 8. Miscellaneous In order to improve effectiveness in the implementation thereof, the PPATK will always review and rectify these Guidelines and the result will be issued periodically especially in the format specification of electronic Cash Financial Transaction Report that is adjusted to the development in its implementation. The PJAK may submit Cash Financial Transaction Reports in 2 (two) methods, namely: a. Manually, namely by sending a hard copy of Cash Financial Transaction Reports in compliance with the sample of Cash Financial Transaction Reporting form attached to these guidelines; or b. Electronically, namely by submitting Cash Financial Transaction Report on-line through the Internet by accessing the PPATK s server using user id, password and secure key determined by the PPATK. PJK intending to submit Cash Financial Transaction Reports electronically, must first submit a Request for Cash Financial Transaction Reporting by to: helpline@ppatk.go.id PPATK will subsequently provide user id, password, secure key and server address for Cash Financial Transaction Report individually to each PJK. As long as PJK has not received any user id, password, and secure key, Cash Financial Transaction Reports shall be made manually. 2

6 Chapter 2 CHAPTER 2: DEFINITION OF CASH FINANCIAL TRANSACTION 1. Based on Article 1 sub-article 8 of TPPU Law, referred to as Cash Financial Transaction shall be withdrawal, payment and deposit transactions conducted in cash or by way of other payment instruments conducted through the PJK. 2. Cash withdrawal, payment or deposit transactions constitute cash financial transactions conducted by customers or financial service users together with Financial Dealers in the form of banks, financing institutions, securities companies, mutual fund managers, custodians, trust agents, custody and settlement institutions, foreign currency traders, pension funds, and insurance companies. 3. Cash Financial Transaction that must be reported by the PJK to the PPATK are the transactions meeting the following criteria: a. Constituting withdrawal/receipt or payment using cash money (notes and or coins); b. In a cumulative amount of Rp.500,000, (five hundred million rupiah) or more or of equivalent foreign currency; and c. Conducted in one time or several time transactions in one business day at one or several offices of a PJK. 4. Cash Financial Transactions are detected through cash inflow and outflow occurring in the respective PJKs. The aforementioned detection can be described in the chart below. 3

7 Cash Financial Transaction Concept Payments that Must be Reported 5. The following are several examples of Cash Financial Transactions: a. An account holder customer conducts one or several time cash withdrawal transactions from his account in 1 business day with a cumulative value of Rp.500 million or more at one same PJK office or at several offices of the same PJK. 4

8 b. An account holder customer conducts one or several time cash payment transactions to his account or to the accounts of other persons in 1 business day with a cumulative value in the amount of Rp.500 million or more at one same PJK office or at several offices of the same PJK. c. A walk-in customer uses/utilizes the PJK services by conducting transactions using cash money in the amount of Rp.500 million or more in 1 business day. d. A walk in customer remits some money to a beneficiary by depositing cash in the amount of Rp.500 million or more in 1 business day. e. A walk in customer receives a transfer or remittance of money from another party and he draws such money in the amount of Rp. 500 million or more in 1 business day. 6. If a PJK finds cash transactions not complying with Cash Financial Transaction criteria as intended in sub-article 3 above, however, based on the consideration of the PJK concerned such transactions comply with one of the Suspicious Financial Transaction elements as intended in Article 1 paragraph (7) of TPUU Law, the PJK concerned must report such transactions to the PPATK as Suspicious Financial Transactions 1). 7. The depositing of instruments such checks or giro orders to a PJK in the form of bank is excluded from Cash Financial Transactions that must be reported to the PPATK. In the event that customer deposits some cash money to a PJK in the form bank to be deposited in the following day, a Cash Financial Transaction occurs at the time such deposited cash money has been booked and implemented. 8. An obligation to Report Cash Financial Transactions is not applicable to transactions exempted from reporting obligation as intended in Article 13 paragraphs (4) and (5) of TPPU Law, which shall be set forth further in Chapter 3. 1) Detailed description concerning the identification of Suspicious Financial Transactions and their reporting procedures can be seen in Guideline II, Guideline IIA, Guideline III and Guideline IIIA. 5

9 9. Information that must be reported by PJK in a Cash Financial Transaction Report shall be contained in the form sample of Cash Financial Transaction Report (see ATTACHMENT). Information submitted both Manually and Electronically shall be the same and shall be based on the form sample of Cash Financial Transaction Report. 6

10 Chapter 3 CHAPTER 3: EXEMPTED CASH FINANCIAL TRANSACTIONS 1. The provisions of Article 13 paragraphs (4) and (5) of TPPU Law stipulate that cash transactions exempted from a reporting obligation of Cash Financial Transactions shall include the following transactions: a. Inter bank transactions; b. Transactions with the Government; c. Transactions with Central Bank; d. Payments of salaries and pensions; and e. Other transactions stipulated by the Head of PPATK or at the request of PJK approved by PPATK. 2. All Exempted Transactions as intended in paragraph 1 subparagraphs a to d above shall not be reported by PJK as Cash Financial Transactions to PPATK. However, PJK shall be internally obligated to administer the documents related to Exempted Transactions in the form of hard copy or on an electronic basis in accordance with the applicable laws and regulations. 3. Exempted Transactions as intended in paragraph 1 sub-paragraph d above shall be a certain transaction routinely conducted by an institution/company in the context of the payment of employee salaries. Cash withdrawal/payment transactions by an individual customer, which based on his acknowledgement are conducted for salary payment and not routinely conducted shall not be included in Exempted Transactions. 7

11 4. Exempted Transactions as intended in paragraph 1 sub-paragraph e shall be determined by way of the following: a. Based on the decision of the Head of PPATK to determine a transaction exempted from Cash Financial Transaction Report. The decision of the Head of PPATK shall be determined based on the number of transactions, form of certain PJK or working territory of certain PJK. Such exemption can be applied to all PJKs and/or certain PJK both for unlimited (permanent) term and certain term. b. Based on the request of PJK and due to the consideration that the customer of such PJK routinely conducts cash transactions in a large amount in accordance with the customer profile and his business characteristics. The Head of PPATK, under various considerations, may approve or reject a request for exemption from Cash Financial Transaction Reporting that is filed by a PJK. 5. The stipulation of Exempted Transactions by PPATK and the procedures for requesting an Exemption from Cash Financial Transaction Reporting by PJK shall be separately provided for in a Decision of the Head of the PPATK. 8

12 Chapter 4 CHAPTER 4: PROCEDURES FOR FILLING OUT CASH FINANCIAL TRANSACTION REPORTING FORM Information that must be reported by PJK in a Cash Financial Transaction Report shall be contained in the form sample of Cash Financial Transaction Report (see ATTACHMENT). Information that must be submitted both Manually and Electronically shall be the same and shall be based on the form sample of Cash Financial Transaction Report. A. Manual Reporting DESCRIPTION OF THE CONTENT OF CASH FINANCIAL TRANSACTION REPORTING FORM Content Description No. 1. Cross (X) your appropriate choice: a. New Report If this report is a new Cash Financial Transaction submitted to a PJK. b. Correction Report If this report is a correction of a Cash Financial Transaction report once submitted to a PJK. PART I: IDENTITY OF ACCOUNT HOLDER/TRANSACTION ENACTOR A. Account Holder Transaction Enactor The identity of transaction enactor at the same time serving as an account holder at such PJK. If transactions are conducted by courier/messenger, the account holder data must be reported. 2. Full Name or Name of Account Holder Company: 9

13 Content Description No. Full name of individual holder or company as transaction enactor. 3. Taxpayer Registration Number (NPWP): Self-explanatory 4. Address: Self-explanatory 5. City: Self-explanatory 6. Province: 7. Date of Birth (date/month/year): To be filled out only by individual account holder. 8. Occupation/Profession/Line of Business (if it is a company): Including occupation such as student, college student and housewife. For companies, please fill out in accordance the company s main line of business. 9. Type of Identity: For companies, fill out in accordance with the Permit Number owned by the company concerned. (in Another column). 10. Data of Account a. Type of Account For Banks for example Clearing Accounts, Savings, Deposits and others. For Insurance for example the type of insurance/policy For Financing Institutions for example Consumers, Leasings, Fenactoring and Credits For Pension Funds for example Participation Accounts. For Securities Companies, Mutual Fund Managers and Custodian Banks for example Regular Securities Accounts or Marginal Securities Accounts. b. Number of Account B. Transaction Enactor constituting Broker, Proxy Holder or Walk-in Customer Fill out if the transaction enactor is a Broker, Proxy Holder or Walk-in Customer different from account holder in sub-paragraph 10

14 Content Description No. a above. 11. Name of Transaction Enactor: Full name of the person or company conducting the transaction. 12. Taxpayer Registration Number (NPWP): Self-explanatory 13. Address: 14. City: 15. Province: 16. Date of Birth (date/month/year): To be filled out by individual transaction enactor. 17. Type of Identity: For companies, fill out in accordance with the Permit Number owned by the company concerned. (in Another column). SECTION II: TRANSACTION 18. a. Cash Inflow (in Rupiah): The nominal value of cash payment transactions in rupiah. b. Cash Inflow in foreign exchange, e.q. in Rupiah: The nominal value of cash payment transactions in foreign exchange equivalent to Rupiah. The exchange rate used is the exchange rate stipulated by PJK in conducting transactions. Mention the name of foreign exchange used. c. Total Cash Inflow: 19. a. Cash Outflow (in Rupiah): The nominal value of cash withdrawal transaction in rupiah. b. Cash Outflow in foreign exchange eq. in Rupiah: The nominal value of cash withdrawal/purchase transactions in foreign exchange equivalent to Rupiah. The exchange rate used is the exchange rate stipulated by PJK in conducting transactions. Mention the name of foreign exchange used. 11

15 Content Description No. c. Total Cash Outflow: 20. Date of Transaction (date/month/year) 21. Mention the account related to transaction: If the cash financial transaction conducted involves other party s account and PJK owns such information. 22. Mention any other information (if any): PART III. TRANSACTION PLACE 23. Name of PJK Office where the transaction occurs: 24. Address of PJK place where the transaction occurs: 25. Name of the Reporting PJK Official: 26. Signature of PJK Official: B. Electronic Reporting The substance and explanation about Electronic Reporting Form of Suspicious Financial Transactions are based on the explanation of the above Manual Reporting Form. The procedure to fill out Suspicious Financial Transaction Reporting Form electronically can be seen in the attached User s Guide. 12

16 Chapter 5 CHAPTER 5: Reporting Methods A. Manual Reporting 1. Cash Financial Transaction Reports shall be sent in closed envelopes. 2. In the event that PJK use courier/expedition services to submit Cash Financial Transaction Reports then the respective PJK must draw their attention to the following: a. Measures that can be taken to avoid the possibility of information abuses or mistakes that may be detrimental to the PJK, customers or general public directly or indirectly. b. The security aspect in using the facilities utilized for preparing reports or documents. c. Granting of authority from PJK to courier/expedition service companies to deliver reports to PPATK. 3. PJK shall fill out Suspicious Financial Transaction Reporting forms with the required data in compliance with the available format. B. Electronic Reporting 1. Electronic reporting can be conducted by submitting a request through sent to helpline@ppatk.go.id 2. After receiving a request, PJK will obtain user id, password, secure key and address of Cash Financial Transaction reporting server. 13

17 3. PJK must conduct the administration, under a special treatment, of user id, password, and address of Cash Financial Transaction reporting server and take the following measures: a. Take measures that can avoid the possibility of violation of user id, password, secure key and address of Cash Financial Transaction reporting server or mistakes that may be detrimental to the PJK, customers or general public directly or indirectly. b. Heed the security aspect in using facilities utilized for preparing reports and or documents such as user id, password, computer, diskette, print-out of reports and documents in the context of reporting Cash Financial Transactions. 4. PJK shall fill out Cash Financial Transaction Reporting forms electronically with the required data in compliance with the available format. 14

18 Chapter 6 BAB 6: Report Submission Address A. Manual Reporting Manual reporting shall be addressed to: Indonesian Financial Transaction Reports and Analysis Center (PPATK) BI Building Kebon Sirih, 4 th Floor Jl. Kebon Sirih No Jakarta B. Electronic Reporting Electronic reporting shall be conducted using user id, secure key and password provided by PPATK by accessing PPATK s Cash Financial Transaction reporting server, the address of which will be informed individually by PPATK to the respective PJKs. 15

19 Chapter 7 BAB 7: REPORT SUBMISSION TIME LIMIT 1. Cash Financial Transaction Report shall be submitted to PPATK by no later than 14 (fourteen) business days following the occurrence of Cash Financial Transaction. 2. The aforementioned 14 (fourteen) business day period shall be calculated as from the occurrence Cash Financial Transaction at PJK until the date the Cash Financial Transaction Report is received by PPATK. 3. The date of receipt at PPATK shall be: a. In the event that such reporting is done manually, the date of receipt of Cash Financial Transaction Reports may be: - The date of postage; or - The date of receipt at PPATK. b. In the event that such reporting is done electronically, the date shall be the submitted date recording automatically in the PPATK s Report system. 4. In accordance with Article 8 of TPPU Law, Financial Dealers deliberately not conveying such Cash Financial Transaction report to PPATK shall be subject to a minimum fine of Rp.250,000, (two hundred and fifty million rupiah) and a maximum fine of Rp.1,000,000, (one billion rupiah). 16

20 Chapter 8 CHAPTER 8: CONFIDENTIALITY 1. Cash Financial Transaction reports are very confidential documents. 2. Each PJK shall be responsible for the confidentiality of Cash Financial Transaction Reports. 3. PPATK shall also be responsible for the confidentiality of Cash Financial Transaction Reports, since their acceptance by PPATK. 4. Implementation of reporting obligation by Financial Dealers in the form of Commercial banks including submission of supporting document is excluded from the bank confidentiality provisions as intended in the Law providing for bank confidentiality. 17

21 Chapter 9 CHAPTER 9: MISCELLANEOUS Inquiries related to Cash Financial Transaction Reports shall be addressed to PPATK to the following address: helpline@ppatk.go.id 18

22 ATTACHMENT - 1

23 CASH FINANCIAL TRANSACTION REPORT INDONESIAN FINANCIAL TRANSACTION REPORTS AND ANALYSIS CENTER (PPATK) G E D U N G B A N K I N D O N E S I A K E B O N SIRIH, LT. 4 JL. KEBON SIRIH JAKARTA TELP: (62-21) FAX: (62-21) Cross (X) your a. New Report b. Correction Report appropriate choice PART I: IDENTITY OF ACCOUNT HOLDER/TRANSACTION ENACTOR A. Account Holder Transaction Enactor 2. Full Name or Name of Account Holder Company 3. Taxpayer Registration Number (NPWP) 4. Address 5. City 6. Province 7. Date of Birth (date/month/year) 8. Occupation/Profession/Line of Business (if it is a Company) 9. Type of Identity (Cross (X) the data owned) a. Identity Card (KTP) b. Driver s License (SIM) c. Passport e. KIMS/KITAS/KITAP f. Others 10. Data of Account a. Type of Account b. Number of Account Number B. Transaction Enactor Constituting Broker, Proxy Holder or Walk-in Customer 11. Name of Transaction Enactor 12. Taxpayer Registration Number (NPWP) 13. Address 14. City 15. Province 16. Date of Birth (date/month/year) 17. Type of Identity (Cross (X) the data owned) a. Identity Card (KTP) b. Driver s License (SIM) c. Passport e. KIMS/KITAS/KITAP f. Others Number

24 PART II: TRANSACTION 18. a. Cash Inflow (in Rupiah) 19. a. Cash Outflow (in Rupiah) 18 b. Cash Inflow in Foreign Exchange eq. in Rupiah Type of Foreign Exchange: 18 c. Total Cash Inflow 20. Date of Transaction (date/month/year) 21. Mention the account related to transaction 19 b. Cash Outflow in Foreign Exchange eq. in Rupiah Type of Foreign Exchange: 19 c. Total Cash Outflow 22. Mention any other information (if any) PART III: TRANSACTION PLACE 23. Name of PJK office where the transaction occurs 24. Address of PJK where the transaction occurs 25. Name of the Reporting PJK Official 26. Signature of the PJK Official

25 ATTACHMENT 2