gcg citibank english

7/30/2019 GCG Citibank English

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TABLE OF CONTENS

TABLE OF CONTENTS......................................................................................1

CHAPTER I INTRODUCTION

A.Background.................................................................................................2B.Problems.....................................................................................................3C.Destination..................................................................................................3D.Writing Methods.........................................................................................3E. Systematics Writing....................................................................................3

CHAPTER II DISCUSSION

A.Case of Citibank.........................................................................................4B.Principle Good Corporate Governance.......................................................6C.Application of Principles of Responsibility (Responsibility) in Good

Corporate Governance Case Against Embezzlement By Employee

Citibank Customer Funds Based Banking Regulation...............................8

D.The Legal Protection For The Citibank Customers Experiencing LossesThe Bank Negligence...............................................................................10

CHAPTER III CLOSING

A.Conclution................................................................................................11B.Suggestion................................................................................................12

REFRENCE......................................................................................................13


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CHAPTER I

INTRODUCTION

A.BackgroundEconomic development and a rapidly changing competitive with increasingly

complex problems require the adjustment of economic policy and the improvement of

the financial system, the national development should always pay attention to

harmony, harmony, and balance the various elements of the development, including in

the fields of economics and finance. Therefore, the necessary policy adjustments in

the economy including banking sektro so hopefully will be able to improve and

strengthen the national economy.

Bank is a financial institution as a place to collect and distribute public funds,

because banks earn income and capital of the deposits in the bank and then delivered

back to the community. Based practice, a bank as an intermediary institution mustconduct activities in a professional manner in order to increase public confidence in

the use of banking services. If not, then there will be a crisis of confidence and people

will pull their money stored in the bank.

Good Corporate Governance (GCG) is simply defined as the activity of

running and growing company with a clean, comply with applicable laws and care for

the environment that is based on socio-cultural values are high. In addition to

functioning as a corporate governance guidelines in order to enhance corporate value,

this principle also aims to create an environment conducive to the growth of the

business sector that is efficient and sustainable. This is similar to the opinion of the

Deputy Governor of Bank Indonesia (BI), Halim Alam, which states that there are

five (5) principles of Good Corporate Governance (GCG) which is an absolute must

in the financial business, namely openness (transparency), accountability

(accountability), fairness (fairness), independency (independency), and responsibility

(responsibility).


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Loss events Citibank customer funds allegedly due to poor internal controls

and not in accordance with the Standard Operating Procedure (SOP). Based on the

testimony of Bank Indonesia, Citibank employee has violated the procedure, such as

the blurring of recording transactions and improper withdrawal of the transfer slip on

some client accounts. In this case, many experts considered that a violation did former

Citibank senior relationship manager as it is easy and often occurs in the banking

world. Even such violations are not only carried out by an employee who has a high

position in the corporate banking. Employees at lower levels such as tellers and

customer service can do. Things like this, in principle, will not happen if there is an

internal control and supervision of Bank Indonesia (BI) is tight.

B.Problems1. How the application of the principle of responsibility (responsibility) in the case

of Good Corporate Governance embezzlement by Citibank employees based

banking regulations?

2. How legal protection for Citibank customers who suffered losses due tonegligence by the bank?

C.Destination1. Understand the application of the principle of responsibility (responsibility) in the

case of Good Corporate Governance embezzlement by Citibank employees based

banking regulations.

2. Understand the legal protection for Citibank customers who suffered losses due tonegligence by the bank.

D.Writing MethodsJuridical-normative method performed by examining secondary data.

E.Systematics Writing- TABLE OF CONTENTS- CHAPTER I INTRODUCTION- CHAPTER II DISCUSSION- CHAPTER III CLOSING- REFERENCES


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CHAPTER II

DISCUSSION

A.Case of CitibankWhite Case Crime

January 18, 2013

White Crime: Melinda Dee Veil of White Collar Crime (White Collar Crime) The World

Bank

Clients of Citibank embezzlement case worth Rp40 billion by Inong Malinda aka

Melinda Dee, who served on the bank's Citigold Relationship Manager is one of the legal

case at most public attention in 2011. In addition to the value of crime is quite fantastic, this

case spread to private problems because a luxury lifestyle with her husband Andhika

Gumilang Melinda.

Burglary by Melinda Gammon customer deposits for approximately three years ended

March 23, 2011 after eight investigators from the Directorate of Economics and Special

Criminal Investigation Department Police Headquarters catch Melinda at her apartment in

SCBD, South Jakarta. Teams from Police Headquarters to move after receiving the report

Citibank in January.

In court testimony in visible mode used Melinda, by abusing the trust of her clients

snapper. By Melinda, rich clients and busy it was presented with a blank form to be signed in

order to facilitate the transaction. But it turns out Melinda stole the money little by little

unwitting owner account through the conspiracy with his subordinates, Dwi Herath, Novianty

Iriane and Betharia Panjaitan as Head Teller Citibank.

Prosecutor Melinda indicted of embezzlement and money laundering in the period

January 22, 2007 until February 7, 2011 through 117 transactions, with 64 transactions which

are in the form of fractional dollars worth Rp27, 36 billion and 53 transactions worth 2.08

million dollars.

In order to gain the trust of customers, 47-year-old woman first treat them in a special

way, for example by serving in a special room at the Citibank office. This treatment is not

only given a short time, but to tens of years to really believe customers.

From here, Melinda carefully trace the pattern of customer transactions in question,

and then ask for a signed blank forms. Blank this is what he used to withdraw funds by

ordering Dwi transfer some money to his company. Melinda also use a power of attorneyfrom the client, so the client as if it came to the bank to make a transaction.


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To obscure evidence of a crime, Melinda made a private company which flowed

Citibank customer funds on behalf of others. In the end, the money is used, among others, to

installment super luxury cars like Ferrari. Just look at the testimony Rohly Pateni, one of the

customers who are victims of Melinda. He said he was believed to have been 18 years old

Melinda being handled Citibank and Melinda. He rarely checked her account because of busywork.

Based on the testimony of former Executive Head at Citibank Citigold Interest,

Reniwati Hamid, Melinda flow of customer funds to his four companies, namely, Sarwahita

Global Management Company, Porta Axell Amitee Company, Qadeera Agilo Resources

Company, and Axcomm Infoteco Centro Company. Reniwati Utma itself served as Director

in four companies which he founded with Melinda, Roy Sanggilawang, and the Timora

Gesang.

Of the four companies, Melinda pulled the money for personal gain, Andhika and her

sister, Visca Visca Lovitasari and husband, Ismail bin Janim. Andhika accommodate the

stolen money by opening multiple accounts with different identities for using a fake ID. He

also dragged to court on charges of money laundering by accepting and accommodating

money allegedly the proceeds of crime siri wife.

In addition to ensnare Melinda, Andhika, Visca, and Ismail, police dragged the co-

worker Melinda Reniwati Hamid, RJ as the Official Cash Manager or supervisor teller, and

SW as the Cash Manager Supervisor. They followed Dwi Herath Harno Wijoyo bint, bint

Iriane Novianty Emon, and Betharia Panjaitan is first named as a suspect and were

undergoing trial for allegedly helped Melinda deeds.

The case will continue in 2012 because all the defendants still on trial at the South

Jakarta District Court. Yet none of them were sentenced by the judge. The hearing may be

continued until a few years from now if the trial continues to the Supreme Court.

Comment of cases Melinda Dee

Cases involving Melinda Dee (47) unmasked white-collar crime (white collar crime)

in the banking world. Models of white-collar crime is a crime in the evolution of the modern

world. Historically in developed countries, this is referred to as business crime or economic

crime criminality. This is because the perpetrators of these crimes involve employers,

employees banks, financial institutions and officials. At first a lot of white-collar crime

happens in government bureaucracy.

The reason Melinda Dee in White Collar crimes (corruption)

By leveraging the complexity and opacity of the bureaucracy. Complexity that is

being manipulated to be fertile ground for crime such as corruption and bribery. Dee melinda

cases including cases of corruption that advanced, why I mention that, because of the action


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taken by Melinda Dee is the use of advanced network technologies. With the implementation

of the computerized system, the banking sector as fertile ground for such evil practices. This

model of crime is a symptom of an industrial society. The use of technology in society than

the more efficient industry, also have a negative effect, especially with the efesiennya crime

as well. In the computerized society, theft can be done simply by massaging the buttons onthe computer keyboard connected Internet network. Then the banking system in the network,

a Melinda can safely divert billions of clients' money in its own account.

Malinda Dee case may be a marker of criminality symptoms using a computerized

system, the electronic data will be the target of the crimes committed. Cases of white collar

crime (white collar criminals) will increase in the post-industrial society and industry.

Melinda dee of this case we can conclude that corruption can occur anywhere due to

lack of opportunity and security for information systems. Information systems for the

banking industry is an asset that needs to be secured from all parties who are not interested

and have the authority. Especially seen that Melinda Dee had 3 years of doing this crime.

Here we can see the lack of awareness of people about the occurrence of changes in riding a

Melinda Dee.

B.PRINCIPLE GOOD CORPORATE GOVERNANCEIn accordance with Article 3 of the Decree of the Minister of State-Owned Enterprises

No. Kep-117/M-MBU/2002 in Effendi (2009:4-5) principles - principles that should be

considered in the company in implementing good corporate governance are:

A. Transparency

Transparency in decision making process and the relevant material information

regarding the company. The transparency principle adopted by the company require any

measures taken by the company shall be in writing and communicated to stakeholders as

those who need information about the development.

B. Responsibility

Principle where the managers are required to provide responsibility for all action in

managing the company to its stakeholders are as a manifestation of the trust given to

corporate.

C. Accountability


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Clarity functionality, implementation, and management liability companies that the

management company to run effectively and economically. In this case the company should

define clear responsibilities of each organs in accordance with the organization that runs the

vision, mission, business objectives and strategy of the company. The company must ensure

that all companies are competent organ of the organization in accordance with its

responsibilities and understand their role in the implementation of GCG. The company also

had to ensure the presence of a check and balance system in the management of the company.

d.Tanggung Responsibility (Responsibility) Compliance management company against the

legislation in force and the principles of a great corporation. In maintaining the long-term

sustainability of the company, the company must ensure that in its operations, the company

carrying out the provisions, laws and the applicable law, and the company should act as a

good corporate citizen (including both company cares about the environment and social

responsibilities).

D. Independency

A situation in which a professionally managed company with no conflict of interest

and influence or pressure from any party that is not in accordance with the legislation in force

and the principles applicable corporation.

E. Fairness

Justice and equality in fulfilling the rights of stakeholders interest arising from treaties

and regulations in force. Companies can and must provide equal opportunity to all

stakeholders to provide input and express opinions in the interest of the company and have

access to company information.

Based on the case about the customer's signature forgery by melinda where Malinda

In this case do many forged the signatures that are not known by the client. In this case there

is one of the principles that have violated the principles of professional responsibility,

because he did not commit professional judgment in all the activities he did, here melinda

also violates the principle of integrity, because it does not maintain and increase customer

confidence.


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C. Application of Principles of Responsibility (Responsibility) in GoodCorporate Governance Case Against Embezzlement By Employee

Citibank Customer Funds Based Banking Regulation

Basically offender embezzlement of Citibank (Malinda Dee), had violated Penal Code

372 Markets on Embezzlement and Article 49 paragraph (1) and paragraph (2) letter b of the

Banking Law.

To answer the problem of the application of the principle of responsibility

(responsibility) GCG in the Citibank embezzlement case above, the first Citibank must meet

several factors, namely:

1. Internal Factorsa. There is a corporate culture (corporate culture) that support the

implementation of corporate governance;

b. Various regulations and policies issued by the company refers to theimplementation of good corporate governance values;

c. Risk control management firm also based standard rules of corporategovernance;

d.

The presence of system audit (inspection) is effective in the company;e. The disclosure of information to the public;

While the effectiveness of the implementation of GCG internally by the bank

will not run without the support of outside parties, among others:

2. External Factorsa. The presence of a good legal system;

b. GCG implementation support from the public sector or government agency;c. There is a proper example of the implementation of GCG (best practices);d. Development of a system of social values in the community to support the

implementation of corporate governance;

e. Spirit of anti-corruption growing in the public environment in which firmsoperate with some improvement in education quality issues and employment

expansion;

There are two (2) actions to be taken for the implementation of good corporategovernance for banks, namely:


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1) Best PracticesIs a custom or example for the proper implementation of GCG. In

addition to formally comply with the provisions in the legislation and the

provisions of the Bank Supervisory Authority, Citibank should also implement

the banking habits of healthy (best practices), namely:

a) Each bank should have a code of ethics (code of conduct) as a code ofconduct which is reasonable, credible and worthy of all levels of the bank.

b) Each bank should establish corporate values or moral values that must befollowed by all the bank officials.

c) Each bank should establish a corporate culture in line with the vision,mission and corporate values of the bank concerned.

d) Each bank must comply with the prevailing international practice forbanks such as the Uniform Customs and Practices (UCP) and International

Accounting Standard (IAS) as well as the corporate governance guidelines

of the Indonesian Intritute For Corporate Governance (IICG).

e) Every bank and the bankers should obey the code of conduct issued by theassociation in which the bank or banker is a member.

2) Compliance Officer (Director of Compliance)An organ of the company (bank) which serves to control and make

adjustments to the actions taken by the organs of the company (bank) with the

applicable regulations. In this connection it should be noted the following

matters:

a) Banks should ensure that all bank activity has been carried out incompliance with laws and regulations, agreements and commitments by

the bank supervisory authorities, as well as the internal rules and

regulations.

b) Bank must have tools (unit or person) in charge of maintaining thecertainty.

c) Banks are required to comply with the provisions of the Director ofCompliance or other similar regulations issued by the Supervisory

Authority.


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D. The Legal Protection For The Citibank Customers ExperiencingLosses The Bank Negligence

Customer protection is crucial for the organization of national banks. Each

bank is obliged to protect customer assets based on the principle of responsibility

(responsibility) in Good Corporate Governance. Legal protection of customer

contained in the sixth pillar API (Indonesian Banking Architecture) mengenail

customer protection through several stages, namely:

1) Set standards for customer complaints mechanisms:a) Establish minimum requirements for customer complaints mechanism

b) Monitor and evaluate the implementation of the regulations governing themechanism of customer complaints

2) Establish an independent mediation organization and facilitate the establishmentof institutions of banking mediation

3) Set standards of transparency of information products:a) Facilitate the preparation of minimum standards of transparency of product

information bank

b) Monitor and evaluate the implementation of the provisions governing thetransparency of information products

4) Promoting education for clients:a) Encourage banks to educate customers regarding financial products

b) Improve the effectiveness of public education activities regarding Islamicbanking through Communication Center of Islamic Economics (PKES)


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CHAPTER III

CLOSING

A.Conclusion1. Application of the principle of responsibility (responsibility) in Good Corporate

Governance for Citibank embezzlement case can be realized through four (4)

terms, namely the first, Adjustment Standard Operating Procedure (SOP) with the

existing best practices in the form of making mechanism to check and recheck

every transaction . Second, improvement of corporate culture by the head of thebank, the Director of Compliance (Compliance) Citibank for determining the

basic principles (guiding principles), the values (values) and understanding of the

code of ethics (code of conduct) the company consistently. Third, improving

internal audit mechanism through the establishment of effective risk control

management systems mature. Fourth, improvements to the structure of the

corporate Human Resources organization by making supervision of all existing

positions and to implement the principle of Know Your Employee of the bank

employees.

2. Enforcement of legal protection do for clients who suffered losses are first, tomake a complaint to the bank in accordance with Bank Indonesia Regulation

Number 7/7/PBI/2005 On Grievance Settlement consisting of a customer

complaint receipt, handling and resolution of complaints, and monitoring

completion complaint. Second, the mechanism of protection directly through

mediation in accordance with the notification issued by Bank Indonesia (SEBI)

Number 8/14/DPNP regarding filing dispute resolution mechanism through

mediation. However, if the mechanism is still not enough, then the customer can

use the legal system, both criminal prosecution in accordance with Article 372 of

the Criminal Code on fraud in conjunction with Article 49 (1) and (2) letter b of

the Banking Law, as well as by tort accordance with Article 1365 of the Civil

Code concerning tort to fraud perpetrators.


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B.Suggestion1. Citibank should make information management system that can integrate savings

products (deposits) with a portfolio of clients and conduct regular evaluations toconduct fit and proper test not only to the Board of Directors, but also to the

employees of the bank any given period;

2. Citibank had to add new positions higher (supervisor) to the positions of SeniorRelationship Manager whose job is to oversee and conduct internal control

functions through the implementation of the surprise audit, as well as through the

Director of Compliance (compliance) regulations and the need to create a new

division-related education on customer protection in order to minimize the

possibility of fraud caused by ignorance of the customer for products and banking

services;


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REFERENCES

Abdulkadir Mohammed, Law Firms Indonesia, PT Citra Aditya Bakti, Bandung, 2006.

Adrian Sutedi, Good Corporate Governance, Sinar Grafika, Jakarta, 2011.

Rachmadi Usman, Legal Aspects of Banking Indonesia, PT Gramedia, Jakarta 2001.

Without the name of the author, Complete Audit Citibank, Police Shoot Boss PT. SGM,

http://www.rakyatmerdeka.co.id. (accessed on 20 April 2013, at 10:21 pm)

Thomas Suyitno, Institutional Banking, PT Gramedia, Jakarta, 1993.

Legal Economy, Banking Absolute Got 5 GCG, http://economy.okezone.com (accessed on

20 April 2013, at 17:19 pm)

www.madani-ri.com. (accessed on 21 April 2012 at 22:49 pm)

http://news.okezone.com/read/2011/12/26/349/547245/large

http://malingpro.blogspot.com/2012/05/malinda-dee-contoh-kasus-kejahatan.html

Dede Sharif, researcher and professor of Sociology UIN Sunan Gunung Djati Bandung

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