Employee Criminal Liability for the Prudential Principle of a Bank

Teuku Fathir Mustafa, Bismar Nasution

2020

Abstract

In conducting business in the banking sector in Indonesia, it is based on economic democracy by using the precautionary principle. The implementation of financial transaction activities is important to apply the precautionary principle in order to minimize the banking risks. Regulations regarding the application of the precautionary principle of banks made by the Financial Services Authority (FSA) as a rule maker in the Financial Services Sector. The regulation does not contain criminal sanctions, but only administrative and compensation sanctions. This study will examine and analyze: criminal liability for bank employees who do not implement the bank's prudential principles. In this research, normative legal research was carried out using secondary data as legal material sourced from existing banking cases, particularly at the Lubuk Pakam District and Medan District Courts. In the event of a violation of the regulations regarding the application of the precautionary principle of the bank, the perpetrators are only subject to administrative and compensation sanctions in accordance with regulations issued by the FSA, not criminal sanctions based on the Criminal Code. Law Enforcement Officials must distinguish between violations of bank internal rules and violations of criminal law.

Paper Citation

in Harvard Style

Mustafa T. and Nasution B. (2020). Employee Criminal Liability for the Prudential Principle of a Bank. In Proceedings of the International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies - Volume 1: CESIT, ISBN 978-989-758-501-2, pages 28-34. DOI: 10.5220/0010294200003051

in Bibtex Style

@conference{cesit20,
author={Teuku Fathir Mustafa and Bismar Nasution},
title={Employee Criminal Liability for the Prudential Principle of a Bank},
booktitle={Proceedings of the International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies - Volume 1: CESIT,},
year={2020},
pages={28-34},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010294200003051},
isbn={978-989-758-501-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies - Volume 1: CESIT,
TI - Employee Criminal Liability for the Prudential Principle of a Bank
SN - 978-989-758-501-2
AU - Mustafa T.
AU - Nasution B.
PY - 2020
SP - 28
EP - 34
DO - 10.5220/0010294200003051