Bank Indonesia (BI) has finally set a sanction to Citibank for two cases that convolute the foreign bank. BI rate proved Citibank made a mistake in the application of risk management and standard operating procedures (SOPs).
BI deputy governor Budi Rochadi states, Citibank breach of Bank Indonesia Regulation (PBI) on implementation of risk management for commercial banks. Citibank also has violated the Regulation on the implementation of the activities Tool Using the Card Payment (APMK). "On that basis, after consideration, we decided to give a number of sanctions for Citibank as of today," he said on Friday (6 / 5).
The first sanctions, Citibank prohibited from receiving or applying the acquisition of new customers for priority services (Citigold), for 1 year. Citibank was prohibited from issuing credit cards to new customers for 2 years. Furthermore, Citibank may not use the credit card billing services by a third party for 2 years. "However, long customer service is still allowed to walk," he said.
In addition, Bank Indonesia will conduct a Fit & Proper Test against bank executives and management-related. BI also instructed Citibank to disable the bank's executive officers are involved in the case of priority service (Citigold) and credit card until the completion of the Fit & Proper Test by Bank Indonesia. Citibank was advised to dismiss employees under the executive officers who were directly involved the case of priority service (Citigold) and credit cards.
"During the Fit & Proper Test, the parties are not allowed to leave Indonesia," said Deputy Governor of Bank Indonesia, Halim Alamsyah. He said BI had to record the name of Citibank officials who will be tested again. "But we still need to see again with Citibank, the extent of their involvement in the case of Citibank," he said. Fit & Proper Test is expected to last for 40 days.
Citibank is also not allowed to open a new office for 1 year starting from May 6, 2011. "All types of offices. Want it branches, cash offices, or other office, "said Budi. Bank Indonesia also ask Citibank headquarters in New York a comprehensive evaluation of internal control functions of Citibank in Jakarta.
During that time, Citibank should improve the implementation of risk management and internal control. Then perform corrective measures based on examination results and the results are immediately submitted to Bank Indonesia.
If at a later date, the police and INTRAC find a bigger mistake than Citibank, then sanctions can be reviewed. "Sanctions can be more severe," he said. "He said. Heaviest sanction that can be given is the revocation of license.
BI deputy governor Budi Rochadi states, Citibank breach of Bank Indonesia Regulation (PBI) on implementation of risk management for commercial banks. Citibank also has violated the Regulation on the implementation of the activities Tool Using the Card Payment (APMK). "On that basis, after consideration, we decided to give a number of sanctions for Citibank as of today," he said on Friday (6 / 5).
The first sanctions, Citibank prohibited from receiving or applying the acquisition of new customers for priority services (Citigold), for 1 year. Citibank was prohibited from issuing credit cards to new customers for 2 years. Furthermore, Citibank may not use the credit card billing services by a third party for 2 years. "However, long customer service is still allowed to walk," he said.
In addition, Bank Indonesia will conduct a Fit & Proper Test against bank executives and management-related. BI also instructed Citibank to disable the bank's executive officers are involved in the case of priority service (Citigold) and credit card until the completion of the Fit & Proper Test by Bank Indonesia. Citibank was advised to dismiss employees under the executive officers who were directly involved the case of priority service (Citigold) and credit cards.
"During the Fit & Proper Test, the parties are not allowed to leave Indonesia," said Deputy Governor of Bank Indonesia, Halim Alamsyah. He said BI had to record the name of Citibank officials who will be tested again. "But we still need to see again with Citibank, the extent of their involvement in the case of Citibank," he said. Fit & Proper Test is expected to last for 40 days.
Citibank is also not allowed to open a new office for 1 year starting from May 6, 2011. "All types of offices. Want it branches, cash offices, or other office, "said Budi. Bank Indonesia also ask Citibank headquarters in New York a comprehensive evaluation of internal control functions of Citibank in Jakarta.
During that time, Citibank should improve the implementation of risk management and internal control. Then perform corrective measures based on examination results and the results are immediately submitted to Bank Indonesia.
If at a later date, the police and INTRAC find a bigger mistake than Citibank, then sanctions can be reviewed. "Sanctions can be more severe," he said. "He said. Heaviest sanction that can be given is the revocation of license.
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