Indonesian Government released updates on sanction for non-compliance under AEoI
The Indonesian Government on 05 March published AEoI Updates concerning the non-compliance of financial Institutions and other financial service providers in the context of their KYC, Client due diligence and reporting obligations under the Automatic Exchange of Financial Account Information (“AEOI”).
The Indonesian Government has imposed sanctions for non-compliance with the reporting obligations as follows:
Indonesian based financial institutions and financial service provider not have adequate processes in place to identify financial accounts and/or does not disclose the required information on offshore account holder under the AEoI regulations will be imposed with a maximum fine of RP1,000,000,000.00 (US$ 70,000.00)
Employees of such financial institutions does not carry out the necessary steps to identify and validate the tax residency of their off-shore account holder and/or subtracts or conceals relevant information under AEoI will be imposed with a maximum fine of RP1,000,000,000.00 (US$ 70,000.00) and be sentenced to a maximum imprisonment on one year.