Board of Directors’ Responsibility in The Implementation of Know Your Customer (Kyc) in The Case of Default by Debtors (CASE STUDY NO. 266/PDT.G/2012/PN. SBY)
DOI:
https://doi.org/10.58344/locus.v4i11.5140Keywords:
Directors' Accountability, Default, Know Your Customer (KYC), Prudential Principle, Fiduciary DutyAbstract
The suboptimal implementation of Know Your Customer (KYC) by bank directors contributes to the increase in non-performing loans (NPLs). This normative legal research analyzes the legal responsibility of directors for the failure to implement KYC in the context of debtor default, as well as the integration of KYC in creditworthiness analysis (5C). The results show that KYC has evolved into a fundamental instrument of the board of directors' duty of care, which is functionally integrated to validate the Condition and Collateral criteria. Analysis of Decision No. 266/Pdt.G/2012/PN. SBY indicates that KYC failure constitutes a breach of fiduciary duty that has a causal relationship with the bank's losses. This negligence opens up multidimensional liability for directors, including administrative sanctions, civil lawsuits (Article 1365 of the Civil Code), and potential criminal liability (TPPU). The board of directors holds full responsibility to ensure the effectiveness of KYC as a key pillar of Good Corporate Governance (GCG) to mitigate credit and legal risks.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Fabian Halky Syahir, Satino Satino
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International (CC-BY-SA). that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
