The Role Of A Bank in the Prevention of Money Laundering Through the Implementation of Know Your Customer (KYC) Principles in PT Bank Mandiri (Persero) Tbk.

Abstract

This research discusses the application of Know Your Customer (KYC) Principles by Bank Mandiri as an effort to prevent money laundering. The implementation of this principle was first required by Bank Indonesia Regulation which was later updated by the Financial Services Authority Regulation as part of efforts to maintain the integrity of the national financial system. Banks are required to have an adequate monitoring system of customer accounts and transactions to detect suspicious activities. This research was conducted with normative and empirical legal research methods, which then explains that negligence in the application of KYC principles can lead to sanctions for banks in the form of a decrease in the level of health of banks, restrictions on business activities, and suspension of business activities. In addition, employees who are proven to be negligent may be subject to internal sanctions in accordance with applicable regulations at Bank Mandiri. These findings emphasize the importance of consistent and comprehensive implementation of KYC principles by all banking elements to prevent money laundering and support financial sector stability.