PERMIT OBLIGATIONS AND THREAT OF CRIMINAL SANCTION FOR NON-BANK OR UNLICENSED MONEY CHANGER BUSINESS ACTIVITIES BEFORE EFFECTIVENESS OF LAW ON FINANCIAL SECTOR DEVELOPMENT AND STRENGTHENING OF 2023

Abstract

The exchange of foreign currency to rupiah or vice versa in Indonesia can be carried out by the public in the commercial banks or non - banks business entities commonly called as money changer or non-bank foreign exchange traders. The business activities of the non-bank foreign exchange traders (KUPVA BB) in general thrive in the areas which economy, tourism activities are growing and the area that is the area being the origin of the Indonesian workers working abroad. The purpose of writing of this paper is to study the legal basis of regulation and supervision of KUPVA BB in Indonesia, the permit obligations from Bank Indonesia, as well sanctions for breach of non-permit KUPVA BB from Bank Indonesia. The research method used is the normative law study or doctrinal research. From the result of study, it is obtained the conclusion that the regulation, supervision and permit of KUPVA BB are carried out by Bank Indonesia by referring to the Law, Bank Indonesia, the Law on Foreign Exchange Traffic and Regulation of Bank Indonesia governing KUPVA BB. There is no criminal threat for the breach of obligation to obtain KUPVA BB permit from Bank Indonesia thereby make it difficult in eradication of illegal KUPVA BB currently.