Indonesia: Indonesia Introduces Know-Your-Beneficial Owner Principle for Corporation

08/21/2018

In an attempt to prevent and eradicate activities related to money laundering and/or terrorism financing through corporations, the government has issued Presidential Regulation No. 13 of 2018 regarding the application of the Know-Your-Beneficial-Owner Principle by Corporations for the Prevention and Eradication of the Criminal Acts of Money Laundering and Terrorism Financing (“PR 13/2018”).

 

PR 13/2018, which closely reflects other “Know Your” regulations introduced by certain other Indonesian ministries, provides the following provisions for the application of the Know-Your-Beneficial-Owner Principle (“Principle”) by corporations:

  1. determination of the beneficial owner(s) of a corporation;

  2. application of the Principle;

  3. supervision;

  4. cooperation and requests for information about the beneficial owner;

  5. sanctions; and

  6. transitional provisions.

 

Read the full article here.