financial regulatory check

Why the Financial Regulatory Check Matters for Financial Institutions

financial regulatory checkThe beginning of 2020 added another black record for the Indonesian financial industry with the case of the violations of PT Recapital Sekuritas Indonesia. The company is proven to have violated the laws and regulations of the Capital Market field because the company submitted a misleading Adjusted Net Working Capital Report to the OJK. 

As reported by market.bisnis.com, PT Recapital Sekuritas Indonesia is subject to administrative sanctions in the form of fines, revocation of business licenses as Brokers and Underwriters, and the disqualification of the President Director to practice in the Capital Market for the next 3 years. This case is only the tip of the iceberg of a long blacklist of the financial industry. As seen in this case, the enormous losses caused by the violation are undeniable.

One of the efforts that companies can take to reduce potential integrity risks due to such violation is to conduct a Financial Regulatory Check on their candidates. The check is part of the employment background screening service of Integrity Indonesia and is conducted based on public alerts, announcements and warnings issued by the Indonesian Financial Services Authority (OJK) and the Financial Transaction Reports and Analysis Centre (PPATK).

By conducting a Financial Regulatory Check, companies can determine whether a candidate has received a warning by the OJK or PPATK, whereby:

  • The individual has been involved in a company listed in a warning/announcement
  • The individual has been banned from being an underwriter
  • The individual has been disqualified from practicing in the financial industry

Written by: Aqilla
Image by mohamed Hassan from Pixabay