The central bank imposed a raft of sanctions against Bank Mega on Tuesday, saying the lender implicated in two corruption cases had violated regulations and failed to protect its clients. Bank Mega was barred from taking on new Deposit on Call accounts for 12 months and was prevented from opening branches for a month starting from Tuesday’s announcement.
The sanction also applies to negotiable certificates of deposit and includes prohibitions on renewing customers’ accounts for these products.
“There were violations of the bank’s internal regulations and risk management reflected in weaknesses in [its] standard operating procedures,” Bank Indonesia spokesman Difi A. Johansyah said in a statement.
Difi cited a IDR111 billion case in which bank officials allegedly skimmed funds from oil services company Elnusa’s Bank Mega account. The lender is also being investigated over the alleged illegal transfer of district funds to a Bank Mega account in North Sumatra.
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