MNC Bank is committed to maintaining the highest levels of governance and instilling a professional and ethical culture that values exemplary behavior, environmental awareness, and personal and corporate integrity.
Good corporate governance (GCG) is not simply a compliance measure, but rather a strong link between quality governance practices and value creation. Therefore, from the outset, we have taken steps to ensure a strong foundation within the Bank for implementing GCG principles: transparency, accountability, responsibility, independence, and fairness, as we officially became a public company.
The implementation of these GCG principles demonstrates our commitment as part of the Bank's mission to enhance the company's competitiveness and build our core banking business with structured and professional management. Based on the Bank's code of corporate governance, the Bank implements GCG principles outlined in two pillars as part of its GCG implementation.
The main foundation for GCG implementation is building a strong governance structure, consisting of a comprehensive and solid Board of Commissioners,
Board of Directors, and management. This includes the functioning of committees at both the Board of Commissioners and Board of Directors levels, which support the implementation of the duties and responsibilities of the Bank's management. The second foundation is governance commitment, namely a strong commitment to implementing GCG principles from the company's organs: the General Meeting of Shareholders, the Board of Commissioners, the Board of Directors, and all stakeholders.
The Bank also internalizes GCG principles to all levels of management and employees, highlighting the importance of consistently implementing GCG principles in each work unit. GCG principles have essentially been absorbed into the Bank's corporate values, which are systematically socialized. The expected end result of the internalization/socialization of GCG and work culture is the development of behaviors that reflect GCG culture.
Annual Report on Corporate Governance Implementation
High Risk Jurisdiction
"High-Risk Jurisdictions subject to a Call for Action" refers to high-risk countries/jurisdictions with significant strategic deficiencies in their regimes for preventing and combating money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction. Consequently, MNC Bank is required to implement Enhanced Due Diligence (EDD) and, in very serious cases, apply countermeasures against countries identified as high-risk. This is done to protect the Indonesian financial system from Money Laundering, Terrorist Financing, and/or Proliferation Financing of Weapons of Mass Destruction risks originating from the following countries:
1. Jurisdictions subject to a FATF call on its members and other jurisdictions to apply countermeasures (refusal):
· Democratic People's Republic of Korea (North Korea)
· Iran
The Bank refuses to establish or maintain a business relationship with prospective customers, customers, beneficial owners, conductors, and/or Walk-In Customers (WIC) originating from the jurisdictions in question that are classified as "Blacklisted."
2. Jurisdiction subject to a FATF call on its members and other jurisdictions to apply EDD measures proportionate to the risks arising from the jurisdiction:
· Myanmar
The Bank must carry out Enhanced Due Diligence (EDD) obligations and submit suspicious reports via AML application regarding prospective customers, existing customers, beneficial owners, conductors, and/or Walk-In Customers (WIC) originating from the specified countries. If no further progress is made by October 2026, the FATF will consider applying countermeasures against Myanmar
Jurisdictions with strategic deficiencies are countries or jurisdictions assessed as not yet having implemented action plans for their AML/CFT/CPF programs, and which are therefore subject to close monitoring. The latest list is as follows:
Angola
Bolivia
Bosnia and Herzegovina
Bulgaria
Cameroon
Cote D’Ivoire
Congo
Haiti
Iraq
Kenya
Kuwait
Lao PDR
Lebanon
Monaco
Nepal
Papua New Guinea
South Sudan
Syria
Venezuela
Vietnam
Virgin Islands (UK)
Yemen
The Bank performs Enhanced Due Diligence (EDD) obligations regarding prospective customers, customers, beneficial owners, conductors, and/or Walk-In Customers (WIC) originating from jurisdictions included in the aforementioned list of high-risk countries. This list is subject to change in accordance with policies adopted by the FATF.
*FATF (Financial Action Task Force) is an international organization that sets global standards to prevent money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction.
*EDD (Enhanced Due Diligence) is a highly rigorous investigation and due diligence process that is far more in-depth than standard procedures (Customer Due Diligence or CDD).
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