Preventing Corruption, Fraud, and Money Laundering

Preventing Corruption, Fraud, and Money Laundering

Review of Policy and Performance Effectiveness

Preventing Fraud

UOB Indonesia proactively manages fraud risks through a comprehensive governance framework. The Anti-Fraud Policy outlines the roles and responsibilities of the First Line, Second Line, and Third Line of defense within the Three Lines Model. The policy focuses on six pillars, namely Prevention, Detection, Response, Resolution, Optimization, and Reporting

Employees, business associates, and the public can report concerns of suspected or actual wrongdoing confidentially and securely, without fear of reprisal. Such reports may relate to corruption, fraud, or potential violations of laws, regulations, or policies within UOB Indonesia, including breaches of the Code of Conduct. All reports are kept confidential and are investigated independently by Internal Audit, Anti-Financial Crime Investigation & Intelligence (AFC I&I) for internal fraud allegations, AFC Operations in the respective business units for external fraud allegations, or Human Resources for complaints related to employment or non-fraud misconduct.

In order to promote and raise awareness of anti-fraud culture within UOBI, enhanced mandatory training and annual refreshers were conducted online and in-person across UOB Branches and functions. We also communicate regular EDMs to all employees and participate in industry initiatives such as Indonesia Anti-Scam Centre by OJK and Asosiasi Sistem Pembayaran Indonesia (ASPI) to combat and mitigate fraud in the financial industry.

We also promote greater awareness of fraud prevention amongst customer through frequent communications via our Banking channels and educational videos on preventing fraud.

Preventing Bribery and Corruption

Our Legal Function provides advisory support on compliance with anti-bribery and anti-corruption laws. For instance, they ensure that contracts with third parties are compliant with the prevailing laws and regulations on bribery and corruption. UOB's net zero commitment by 2050 is grounded in the need for a just transition that continues to support socioeconomic growth and improve energy access across ASEAN.

Customer Due Diligence (CDD), Risk Rating and Name Screening
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We conduct CDD, risk assessments, and name screening on customers, related parties, beneficiaries, individuals authorized to name customers, and other parties specified in the AML/CFT and Sanctions procedures. CDD is implemented in accordance with a risk-based approach at the time of account opening and ongoing monitoring, especially for customers considered to be at higher risk.

We have a monitoring system applied to customer transactions in order to identify suspicious financial transactions. Subsequently, the AML/CFT and Sanctions division within our Compliance function carries out further independent analysis on the initial identification. In addition to the monitoring system, if employees, business units or functional units identify the presence of a suspicious transaction, they can escalate their concern to the AML/CFT and Sanction division for further analysis;

We retain our documents in accordance with the relevant laws and regulations;

We have mandatory training modules in place for all employees and Board of Directors that must be completed on an annual basis. The level of difficulty of the AML/CFT and Sanctions training module is adjusted based on the roles and responsibilities of each employee; and

The KYE principle is implemented during the onboarding process of new employees.

UOBI also has an Anti-Money Laundering Committee (AMLC) to ensure active supervision. The AMLC aims to review and support strategies, frameworks, policies, programmes and structures related to AML/CFT and Sanctions, as well as to ensure governance oversight of risks related to AML/CFT and Sanctions.