BOARD OF DIRECTORS’ RESPONSIBILITY IN THE IMPLEMENTATION OF KNOW YOUR CUSTOMER (KYC) IN THE CASE OF DEFAULT BY DEBTORS (Case Study No. 266/PDT.G/2012/PN. SBY)

Fabhian Halky Syahir, . (2025) BOARD OF DIRECTORS’ RESPONSIBILITY IN THE IMPLEMENTATION OF KNOW YOUR CUSTOMER (KYC) IN THE CASE OF DEFAULT BY DEBTORS (Case Study No. 266/PDT.G/2012/PN. SBY). JURNAL LOCUS: Penelitian dan Pengabdian, 4 (11). pp. 10862-10871. ISSN 2829-7334

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Abstract

This study examines the legal responsibility of a bank's Board of Directors for the suboptimal implementation of the Know Your Customer (KYC) principle, which contributes to the increase in non-performing loans (NPLs). Using normative legal research, this paper analyzes the integration of KYC within creditworthiness assessment (5C) and its role in the directors' duty of care. The findings indicate that KYC has evolved into a fundamental instrument for validating the Condition and Collateral criteria in credit analysis. A case study of Decision No. 266/Pdt.G/2012/PN. SBY demonstrates that failure to implement KYC constitutes a breach of fiduciary duty and has a causal relationship with the bank's financial losses. Such negligence exposes directors to multidimensional liability, including administrative sanctions, civil claims under Article 1365 of the Indonesian Civil Code, and potential criminal charges under anti-money laundering laws (TPPU). The Board of Directors bears full responsibility to ensure the effectiveness of KYC as a cornerstone of Good Corporate Governance (GCG) in mitigating credit and legal risks.

Item Type: Article
Additional Information: [No. Panggil : 2210611069] [Pembimbing : Satino] [Penguji 1 : Rianda Dirkareshza] [Penguji 2 : Ridha Wahyuni]
Uncontrolled Keywords: Directors' Accountability, Default, Know Your Customer (KYC), Prudential Principle, Fiduciary Duty
Subjects: K Law > K Law (General)
Divisions: Fakultas Hukum > Program Studi Hukum (S1)
Depositing User: FABHIAN HALKY SYAHIR
Date Deposited: 26 Mar 2026 03:06
Last Modified: 26 Mar 2026 03:06
URI: http://repository.upnvj.ac.id/id/eprint/41814

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