SSEK Partner Fransiscus Rodyanto Speaks about New Indonesian Regulation on Beneficial Ownership

SSEK partner Fransiscus Rodyanto was quoted extensively in an article by International Financial Law Review (IFLR), a leading online and print financial law publication, on Indonesia\'s new regulation on beneficial ownership.

Indonesia\'s president recently issued Presidential Regulation No. 13 of 2018 regarding the Implementation of the Principle on Recognizing Beneficial Ownership of Corporations in the Framework of the Prevention and Eradication of Money Laundering and Criminal Acts of Terrorism Financing.

Frans told ILFR that the enactment of the know-your-beneficial-owner principles by corporations in the framework of the prevention and eradication of money laundering and terrorism financing is a step for Indonesia toward becoming a member of the Financial Action Task Force (FATF), to help the authorities identify tax evasion, and as a safeguard against nominee arrangements.

Frans said one of the most challenging aspects for businesses in implementing the regulation would likely be tracking and providing documentation with respect to beneficial owners. \"This will involve voluminous documentation, even more so when the ownership of a company involves multiple jurisdictions.”

He said another challenge for businesses would be the requirement to identify beneficial owners during the application process to establish a company in Indonesia, which could delay the establishment process, particularly when the company to be established has layers of ownership in multiple jurisdictions.

Frans received his Bachelor of Laws and Bachelor of Economics from the University of Indonesia, and earned his Master of Laws from Leiden University in the Netherlands, as part of the Leiden University Excellence Scholarship program. Frans is heavily involved in projects related to oil and gas, mining, the geothermal industry, clean-water supply, ports and general corporate matters.

You can see SSEK\'s analysis of the new presidential regulation on beneficial ownership here.

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