Busines and Finance

Archive for the ‘Business’ Category

Visit Vice Chairman of Citigroup Inc., Lewis B. Kaden to Bank Indonesia (BI) a few days ago did not affect the attitude of regulators in dealing with the case of Citibank. Central Bank continues to provide strong sanctions against the banks from the United States. BI ignores the option of sanctions despite a written warning BI Regulation allows the selection.
BI impose three penalties against Citibank. First, Citibank Citigold prohibited from adding new customers during the year. Second, Citibank should not be issuing new credit cards for two years. Third, Citibank may not use third parties to collect credit card debt over the past two years.

BI is also preparing other actions, ie, re-fit and proper test for bank directors and prohibits Citibank is opening new offices for one year. Sanction is valid from May 6, 2011. BI deputy governor Halim Alam said, the results showed, Citibank violated the four pillars of Bank Indonesia Regulation Number 11/25/PBI/2009 about risk management, namely the active supervision of top management, policies, standard operating procedure (SOP), information systems in anticipating risk , and internal controls.
BI deputy governor Budi Rochadi warned, this sanction was not final. It is possible that Citibank was sentenced to another; more severe if the following two things are fulfilled. First, if the Center for Financial Transaction Reports and Analysis Center (INTRAC) found Citibank’s involvement in money laundering. Second, if the court decides Citibank Irzen Octa-related death, credit card customers. This operating permit means permission conducting business credit card and Citigold, Citibank not revoke business licenses in this country.

Chairman of the Association of National Banks (Perbanas) Sigit Pramono said, these sanctions have a positive impact on the industry. Because, other banks will introspect and improve SOPs. On the other hand, increased customer confidence. For Inkawan D Jusi, Senior Vice President of Wealth Management Bank Mandiri, this case is a very valuable lesson. Not only for the industry, as well as for BI as a banking supervisor.