TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

BI imposes harsh sanctions on Citibank

  • Esther Samboh

    The Jakarta Post

Jakarta   /   Sat, May 7 2011   /  08:00 am

Bank Indonesia (BI) announced Friday it was imposing severe sanctions on Citibank following a massive embezzlement scandal by a bank employee and the suspected death of a customer at the hands of debt collectors recently.

The bank possibly faces other sanctions if found guilty of the two crimes by a court.

Central bank deputy governor Budi Rochadi said Citibank was barred from issuing credit cards to new customers for two years. The bank has also been prohibited from signing up new customers for its premium wealth service for one year.

BI also ordered Citibank not to use third-party debt collectors for two years and has banned the bank from opening new branch offices until next year, Budi said.

“The sanctions take effect as of May 6, 2011. If heavier violations are uncovered in the following days, further sanctions will be reviewed,” Budi said at a news co...