Limitation Cash Transactions

Based on article 3 of the Draft Law, anyone who in one day wishes to conduct cash transactions of 100 million rupiah (or its foreign currency equivalent) or more is required to use non-cash transactions. Examples of transactions are sales transactions, withdrawals, disbursements and payments.

Exceptions to the Limitation

There are certain transactions which are exempted from the above mentioned limitation to cash transactions. The cash transactions which still may amount more than 100 million rupiah (or its foreign currency equivalent) are amongst others cash transactions:

that take place between financial service providers for business purposes;
related to payments of salary or pension;
which the court requires to pay a party;
in the event of natural disasters;
which are determined by the head of PPATK (Financial Transactions Center)

Sanctions

Any person who is violating article 3 of the Draft Law, can be subject to the following administrative sanctions:

1. a written warning letter;
2. a public announcement stating the violation or sanctions; and/or
3. administrative fines up to 40% of the transferred amount

Similar sanctions also apply to financial service providers and service providers of goods and services. The exact percentage of administrative fine is however not yet set in the Draft Law.

This column is provided by PNB Law Firm Jakarta

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