The Many crimes, done by individual or corporate, in other country region are increasing. Those crimes are about corruption, bribery, smuggling (goods, worker, immigrant, banking, and drugs), and other white collar crimes. Those crimes involve and produce asset in large amount.

     Assets from crime activity generally aren’t spent or used directly by the criminals because they are traceable. Effort to hide or randomize the source of assets gained from crime activity, as meant in the Law, is known as money laundering.

     Banking is the dominant element in financial system which often used as money laundering facility. Many products that are created to increase flexibility for customers are often used by criminals to do money laundering. Related to that, bank has various potential risk such as reputation risk, operational risk, and legal risk. Therefore banking system safety from money laundering activities is requiring a special attention.

     By considering the things above, then Bank Haga management through Risk Management & Compliance Division, especially Compliance unit is require to practice ethical standard and compliance culture. The compliance management itself is along with sound business practise.

BI Regulation No :
     - PBI No. 3/10/PBI/2001 on 18 June 2001
     - PBI No. 2/23/PBI/2001 on 13 December 2001
     - PBI No. 6/10/PBI/2004 on 12 April 2004
     - SE BI No. 3/29/DPNP on 13 December 2001

     Based on the prevailing regulation, PT. Bank Haga in the implementation divide 4 policies, which are:
     - Organizing Policy
     - Customer Acceptance and Identification Policy
     - Customer Account and Transaction Monitoring Procedure Policy
     - Risk Management Procedure and Policy

     To provide assurance in practicing KYC principle, Bank Haga already has Policy and Procedure that organize KYC practice. Policy consists of KYC basic principle understanding, while Procedure provides detail practice guidance about KYC which is useful for the practicing officers in every branch that directly deals with customer (Customer Service, Teller, and Marketing).

     Effective information system development will support Bank officers in performing identification, analysis, monitoring, and providing report about customer’s transaction. Information system in Bank Haga performed by branch and continually monitored by Central Office with online system, so suspicious actions will be discovered quickly.

     PT. Bank Haga also has intern control system, functional or inherent, which can assure that KYC implementation by work units are according to the stated policy and procedure and also an effective and efficient KYC principle implementation monitoring and reporting, and policy practicing in order to minimize risk potential faced by the Bank.

     In terms of providing understanding and assuring KYC principle practice, PT. Bank Haga through Compliance unit continually will always perform socialization in form of training to all Bank Haga branches which is divided in 3 (three) levels, they are: