AML & Financial Services Regulatory Archives

In AML & Financial Services Regulatory

Indonesia: P2SK Law – new concepts for securitization and other financial innovations

January 20, 2023 by Erwandi Hendarta, Mahardikha K. Sardjana, Eddie Prabowo Dewanda and Theresia Fransmanto 4 Mins Read

The P2SK Law introduces the concept of financial instrument managers and trust fund managers. Both are designed as specific purpose entities licensed by Otoritas Jasa Keuangan and established to perform asset securitization and/or trustee fund management activities. The government expects the existence of SPVs to contribute to financial instrument diversification. Trustees, on the other hand, are regulated with the aim of increasing participation by financial market players and bringing about improvement in disclosure and good corporate governance regulations.

In AML & Financial Services Regulatory

United States: The Securities and Exchange Commission New Year’s resolution? Market restructuring for all!

January 20, 2023 by Amy J. Greer and Jennifer L. Klass 1 Min Read

On 14 December 2022, the Securities and Exchange Commission proposed four separate rulemakings under the Securities Exchange Act of 1934 that would create a federally defined best execution standard for broker-dealers and overhaul the US equities market structure. If adopted in their current form, these proposals would meaningfully impact market participants and practices. Given the nearly 1,700 pages of combined rules proposals, firms may need to devote significant resources just to digest their potential impact on particular business models.

In Germany

Germany: Transparency Register / Sanctions Enforcement Act II

January 17, 2023 by Stefanie Tuma and Dr. Robin Haas LL.M. 2 Mins Read

The second act on the effective enforcement of sanctions (Sanctions Enforcement Act II) came into force on 1 January 2023. This includes not only sanctions-related measures, but also amendments to other laws, in particular the German Money Laundering Act, and has implications for the obligations of companies with regard to the transparency register.

In AML & Financial Services Regulatory

European Union: The Digital Operational Resilience Act

January 17, 2023 by Caitlin McErlane and Sue McLean 8 Mins Read

The EU’s Digital Operational Resilience Act aims to promote, improve and ensure operational resilience within the financial services sector. It requires financial institutions to comply with a number of obligations designed to ensure that their business lines remain operationally resilient against various risks. Being “operationally resilient” means being able to resist, recover from and adapt to adverse effects that can disrupt or prevent the provision of services.

Indonesian New Criminal Code (part two)

January 16, 2023 by Andi Y. Kadir, Bernard Sihombing, Reno Hirdarisvita, Luthfi Sahputra and Nabila Farhani Oegroseno 6 Mins Read

The New Criminal Code became the first piece of legislation passed into Law in 2023 and was promulgated on 2 January as Law No. 1 of 2023. In the next three years, the New Criminal Code will replace the 100-year old criminal code currently in place. The New Criminal Code changes the landscape of the penal code in the field of digital information, bribery and corruption, and money laundering related crimes.

In AML & Financial Services Regulatory

Indonesia: Financing service businesses under the P2SK Law

January 10, 2023 by Erwandi Hendarta, Mahardikha K. Sardjana, Eddie Prabowo Dewanda, Johan Kurnia and Amanda Besar 6 Mins Read

The soon-to-be enacted P2SK Law introduces “financing service businesses” as a new umbrella term for several categories of financing services, covering the businesses of finance companies (multifinance), venture capital companies, infrastructure financing companies, IT-based collective funding service providers (peer-to-peer lending platforms), and pawnbroker companies.

In ESG

International: FInsight Live: The Global Financial Institutions Webinar Series

Watch and listen to Baker McKenzie specialists and industry experts talk about recent legal and commercial developments affecting financial institutions around the world. The latest webinar in the series looks at Sustainability for Financial Institutions – Global Trends and the LatAm Perspective.

In Indonesia

Indonesian New Criminal Code

January 6, 2023 by Andi Y. Kadir, Bernard Sihombing, Reno Hirdarisvita, Luthfi Sahputra and Ivan Anugrah 1 Min Read

This client alert discusses the new Indonesian criminal code, which in a few years will replace the existing criminal code. This alert outlines the key features of the new criminal code, and is the first of a series of client alerts on the new Indonesian criminal code.

In AML & Financial Services Regulatory

Indonesia: Agreement on cross-border QR payment cooperation with Japan

January 6, 2023 by Erwandi Hendarta, Mahardikha K. Sardjana, Eddie Dewanda, Johan Kurnia and Jonathan Edward Tobing 2 Mins Read

In the spirit of Bank Indonesia’s Payment System 2025 Visions that were introduced in May 2019, and in conjunction with the G20 Roadmap for Enhancing Cross-Border Payments, Bank Indonesia has agreed on cooperating with the Japanese Ministry of Economy, Trade and Industry to enable consumers and merchants in both countries to make and accept instant cross-border QR payments. The memorandum of understanding for this cooperation was signed on 9 December 2022 in Tokyo.

In ESG

United Kingdom: Greater scrutiny of equal pay: financial services employers should be vigilant

December 28, 2022 by Monica R. Kurnatowska, Robert Marsh and Rachel Farr 2 Mins Read

Equal pay for men and women has been enshrined in UK law since 1970. Since then, and particularly since the turn of the century, equal pay claims have tended to take the form of mass claims in the public and retail sectors. In recent years, however, there has been renewed focus on individual equal pay claims. We expect that the Financial Conduct Authority will step up its scrutiny of equal pay and remuneration policies.