Indonesia toughens bank data rules
ANZ may be affected by a decision by Bank Indonesia that will require foreign banks to relocate information technology systems that currently reside in global or regional headquarters to Indonesia for security and data processing purposes by 2017. Thomson Reuters reported that this edict will cover the entire portfolio of banking activities. For the last two decades, Bank Indonesia has allowed foreign banks to set up their IT operations offshore.The actual implementation of the guidelines, by the Ministry of Telecoms, is yet to be finalised, and one area of concern among foreign banks is that the guidelines also concern single branch banks. ANZ said there was "ongoing dialogue around the detail of the law and its interpretation.""For example, instead of data centre an alternative could be the mirroring of data onshore with full access by the regulators to audit the overseas centres."Commonwealth Bank said it already hosts data for its local subsidiary in Indonesia.reprinted from Compliance Complete service of Thomson Reuters