Know Your Customer

INDRA RIZKI IRWANSAH (0217101462)

DIFFANIA SALSABILA (0217101485)
KELOMPOK 13
Know Your Customer

Know Your Customer Principles One of the prudential principles applied in banks is the
application of the principle of getting to know customers or better known as the Know Your
Customer Principles in every banking transaction.
This is explained in Bank Indonesia Regulation Number 3/10 / PBI / 2001 concerning
Know Your Customer Principles. The Know Your Customer Principles is a principle that
requires banks to recognize their customers before making transactions with the customers
concerned. The principle of knowing customers does not only apply to banking institutions,
but also applies to non-bank financial institutions.
 The principle of knowing customers for non-bank financial institutions is issued by the authorized
institution to oversee the activities of each financial service company in Indonesia. The Ministry of
Finance (MoF) issued a Decree of the Minister of Finance (KMK) Number 45 / KMK06 / 2003
regarding the Application of Know Your Customer Principles for Non-Bank Financial Institutions, such
as insurance companies and pension funds. For institutions below the capital market, what applies is the
decision of the chairman of the Capital Market Supervisory Agency (Bapepam) Number 2 of 2003
concerning Know Your Customer Principles.
The principle of knowing customers is the principle applied by financial service providers in the capital
market sector to:
 a) Knowing the background and identity of the customer
 b) Monitor securities accounts and customer transactions
 c) Report suspicious financial transactions and financial transactions conducted in cash.
How to identify customers

The customer is one of the important stakeholders for banking. Banks as a company
engaged in financial services always interact with their customers. For banks, customer
interaction is a very basic factor in achieving the goals to be achieved by the company.
Understanding of customers in perception as a business subject, not as a business object,
places special attention. Therefore, understanding is needed to recognize the customer's
character through the application of certain instruments that will facilitate customer
identification.
The purpose of identifying customers

The main purpose of the expenditure approval is to approve the expense profile, it must be
able to be issued.
1. enhance understanding of customers comprehensively
2. enhance understanding of customers more specifically as individuals who are unique to
the position and as partners and clients and as a function of assets
3. enhance participants' understanding of instruments that can be used to identify customer
characters
4. increase the participants' skills in analyzing willingness to pay according to the customer's
character
 customer character identification methodology

 Method
The training was delivered face-to-face in the delivery of material by instructors (50%), discussion of specific topics (30%) and the practice of character
identification and probing with instructor guidance (20%)
 Device
To provide a clear picture of the training participants, tools such as pictures, videos, photos, LCD projectors and Flipcart are used
 Time
Improve analyzing willingness to pay according to the customer skills of participants
 Traning Ground
In house training activities can be carried out in Jakarta or other places according to the agreement
 Evaluation
Monitoring of Learning Process Conducted through observation by a facilitator who was present in the classroom and in the field
Session discussion Modules Conducted by filling out a structured evaluation questionnaire after the module discussion
completes Training implementation Conducted by filling out a structured evaluation questionnaire at the end of the
training
 Customer Groupings Based on Risk

 High Risk Customer Policy

Prospective Customers, Customers, Beneficial Owners, or WIC who meet the high risk
criteria are made in a separate list.
A risk management system is applied to determine whether a Prospective Customer,
Customer, Beneficiary Owner or WIC is a high risk criteria.
 Customer Verification according to Risk
Level
 High risk criteria seen from
1. background or profile of Prospective Customers, Beneficial Owners, or WIC including High Risk Customers;
2. financial service sector products at high risk for use as a means of money laundering and / or terrorism financing;
3. transactions with parties originating from High Risk Countries;
4. transactions do not match the profile;
5. included in the PEP category;
6. the business field of Prospective Customers, Customers, Beneficial Owners, or WIC including high-risk businesses (High Risk Business);
7. country or territory of origin, domicile, or transaction of Prospective Customers, Customers, Beneficial Owners, or WIC including High Risk
Countries;
8. the inclusion of Prospective Customers, Customers, Beneficial Owners, or WICs in the list of suspected terrorists and terrorist organizations; or
9. Transactions conducted by Prospective Customers, Customers, Beneficial Owners, or WICs allegedly related to criminal offenses in the
financial services sector, Money Laundering crimes, and / or criminal acts of Terrorism Funding
Default Risk Identification (Inherent Risk)

Consider factors that can increase the risk of Money Laundering and / or Terrorism Funding.
• Customer
• Country or Geographic Area
• Products, Services, or Transactions
• Distribution Network (Delivery Channels)
Consider other relevant factors that can have an impact on the risks of Money Laundering and / or Terrorism
Funding, including:
 1. Trends in typology, methods, techniques and schemes of Money Laundering and / or Terrorism Funding
 2. The Bank's business model, including business scale, number of branch offices, and number of employees as
inherent risk factors within the Bank.
Risk Assessment

• Identifying each of the above factors by considering the likelihood and impact of the risks of
money laundering and / or terrorism financing.
• Determine the level of risk of Money Laundering and / or Terrorism Funding by considering
the results of identification of each factor. The level of risk can be divided into 3 (three)
categories, namely low, medium and high.
• The risk level of each factor can be assessed using the likelihood parameter (likelihood of
risk occurring) and impact (the impact of losses experienced by the Bank in the event that risk
occurs).
Likelihood Scale

The likelihood scale refers to the potential risks of Money Laundering and / or Terrorism
Funding that occur for each particular risk assessed.

Frequency Possible Risks of Money Disbursement and / or Terrorism Funding

Often More than 1 cabbage in 1 year

Enough Often Occur 1 time in 1 year

Rarely Did not happen but that does not mean impossible
Impact (Impact Scale)

Impact scale refers to the severity or damage experienced if a possible risk occurs.
The impact of Money Laundering and / or Terrorism Funding risks can be seen from
several perspectives, including the impact of the amount of loss if the risk occurs on the BPR
business, such as suffering financial losses either from a crime or through sanctions imposed
by the FSA.
Determination of Risk Tolerance

Risk tolerance is an important component of effective risk management.

In setting risk tolerance, the Bank needs to, among other things, consider its ability to
deal with threats related to Money Laundering and / or Terrorism Funding, such as limits on
the number of high-risk customers and / or characteristics inherent in high-risk products,
which can affect the Bank's overall risk as referred to in statutory provisions governing the
implementation of risk management for the Bank
 Data Monitoring

 One important stage in monitoring is data collection. Data can be sourced from individual, community or organizational beneficiaries;
stakeholders; media; academics; and other organizational partners involved in the organization's program. General data needed from the
data sources above relates to the timeliness and substance of the program, the quality of program implementers, and program utilization.
While the specific data needed is closely related to the indicators and targets that have been set.

 Data collection should involve all individuals and institutions with an interest in the project. The monitoring plan by involving all
individuals and institutions has been stated in the monitoring system that is integrated in the organizational planning. Individuals involved
in monitoring should ideally develop a data collection framework in accordance with the data needed. In institutions that already have a
monitoring and evaluation unit, this unit is usually tasked with providing the necessary data collection instruments and has a data base and
information that is integrated with other data in the organization.

 In the monitoring system it is also important to pay attention to the verification sources and methods used in data collection. Verification
source is evidence supporting the progress and effects arising from the implementation of the program. Verification sources can include
notes, reports, statistical data, interviews, newspaper clippings, survey results and so on. The verification source chosen depends on the
indicator being monitored. Next determine the source of verification by considering aspects of cost and complexity in data collection.
PNM

 PT Permodalan Nasional Madani (Persero) or as known as PNM is an Indonesian state-owned enterprise

engaged in financial services. The company was founded on June 1, 1999 and aims to assist the
development of micro, small, medium and cooperative businesses.
history of the pnm

• 1997 Monetary crisis in Indonesia.

• 1998 Tap XVI MPR / 1998 concerning Economic Politics in the Context of Economic Democracy.
• 1999 PT Permodalan Nasional Madani (Persero) was established by the Government on June 1, 1999.
• 2008 PT Permodalan Nasional Madani (Persero) made a business transformation by launching the PNM ULaMM (Micro Capital Services
Unit) product that provides direct financing to micro and small business actors.
• 2009 PT Permodalan Nasional Madani (Persero) diversified its funding sources through collaboration with third parties, namely banks and
capital markets.
• 2012 PT Permodalan Nasional Madani (Persero) successfully obtained funding from the capital market through the issuance of bonds.
• 2015 PT Permodalan Nasional Madani (Persero) launched the PNM Mekaar product (Fostering a Prosperous Family Economy) that
provides special services for underprivileged women, micro-micro entrepreneurs, both who want to start a business or develop a business.
• 2018 PT Permodalan Nasional Madani (Persero) has distributed loans to more than 4 million customers of the Mekaar PNM Program
(Fostering a Prosperous Family Economy).
THANK YOUUUU