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The Indonesian Financial Services Authority (OJK) has introduced Regulation 15/2024 on October 9, 2024, on financial reporting, emphasizing transparency and accountability. For banks and financial institutions, compliance with these new mandates is essential to maintain trust and avoid penalties. Non-compliance can result in fines of up to Rp 50 billion, making it critical for banks to quickly adapt to these new standards before the first quarter of 2025.
What Banks Need to Anticipate
The regulation outlines several key requirements that banks must follow, among these are:
- Internal Control Effectiveness: Banks are required to establish and ensure the implementation of internal control policies and procedures for their financial reporting processes, addressing management override, unauthorized transactions, as well as transaction fairness and accuracy.
- Establish Dedicated Work Units: Banks must appoint specialized work units or executive officers responsible for preventing fraud and manipulation during financial disclosures.
- Clarify the Roles and Responsibilities of Bank Stakeholders: The Board of Directors (BoD), Board of Commissioners (BoC), bank audit committee, controlling shareholders, and affiliated parties now have defined duties in overseeing compliance. Banks must submit internal control reports annually to the OJK as part of financial reporting, including any significant weaknesses or conditions that could threaten the bank’s continuity.
For a comprehensive overview, access the full regulation [Here]
Streamlining Compliance with Compozer
Compozer’s advanced GRC platform streamlines compliance with OJK’s financial reporting regulations, enabling organizations to manage requirements more effectively and efficiently. By automating workflows, reducing manual effort, and optimizing processes, Compozer helps save time, minimize errors, and ensure accurate reporting. These efficiencies not only support regulatory compliance but also enhance stakeholders’ confidence by delivering reliable and transparent financial information.