Saturday, May 7, 2011

Sanctions on Citibank Indonesia

Today I received an e-mail from Citibank Indonesia explaining about the sanctions that the Indonesian banking regulator i.e. Bank Indonesia, has imposed on said bank for violations of internal bank regulations and risk management as well as weaknesses in its internal control and operating procedures.

In connection with the two ongoing scandals, one surrounding suspicions of embezzlement by its former Senior Manager and the other involving the death of a credit card customer, Citibank promised that it will it do its best to follow all the laws and regulations in Indonesia, like it has done for so many years.

Earlier I read on The Jakarta Globe that the sanctions were a two-year freeze on new credit card customers for Citibank Indonesia, a ban on acquiring new priority banking customers for one year and a one-year moratorium on opening new branch offices.

I hope that the above sanctions would not stop the Investigations that are now being carried out by the Police on the possibility of Money Laundering and the Murder cases by officials of Citibank Indonesia.

13 comments:

attayaya-mading said...

baru liat iklan di tv, bermunculan asuransi utk kartu kredit tak tertagih atau tak terbayar.
hmmmm dunia bisnis...

Fahrizi Noer Fajar Azman said...

This case should be continued until the end ...
I hope this case does not happen again

Multibrand said...

@Attayaya-Mading,
Sebenarnya selama kartu kredit juga menawarkan para nasabah untuk ikut asuransi "Credit Shield" untuk tagihan kredit yang tidak terbayuar karena pemegang kartu sakit atau meninggal sehingga tidak bisa bayar.

@Fahrizi,
The bank should not be too aggressive in offering credit cards to reduce risks of unpaid credits. The bank should also control very closely management of their customer's money.

Frau Blogerin said...

Hmmmm... Internal control issues.. I bet the auditors graded them so negatively with "qualified" audit results and they failed SOX requirements for this.... at least they can be exemplary to the rest of the banking community...they should take care depositors' and investors' resources!

Filipina Ini said...

Poor bank..i just hope they learn from their mistakes and that others would learn also.

Filipina Ini

Filipina Ini said...

Poor bank..i just hope they learn from their mistakes and that others would learn also.

Filipina Ini

Multibrand said...

@Frau Blogerin,
Let us hope that only few of the bank's staffs are involved.

@Filipina Ini,
Yes this is a lesson that the bank and other banks should never forget in managing customers' money.

colson said...

I just can't imagine that a few disciplinary measures taken by the supervising bank, would settle for the case of alleged manslaughter c.q. murder and a major case of alleged embezzlement, fraud and/or theft which are in the realm of police and prosecutors..

Multibrand said...

Hi Colson,
Frankly speaking we can only hope that the Police investigations would still go on and not influenced by the decision of BI as bank regulator.

-A. said...

It seems extraordinary to me that an international company such as Citi would allow itself to get involved in such suspicious activity.

I'm curious to know what it means for their brand internationally.

Multibrand said...

Hi A,
Yes it is very strange these strange activities could ever took place at an world class bank like Citibank.
Let's hope that Police investigation would reveal what actually happened.

Webbielady said...

Citibank is such a big entity and seeing it sanctioned, it's quite awesome.... Imean, they earn a lot, they better watch out for their practices/attitude.

Multibrand said...

Webbielady,
It is almost unbelievable that Citibank could be involved in this kind of mess.