DENPASAR ~

Bank Indonesia (BI) Denpasar Office revoked licenses 12 of Money Changers based on violations during 2014.

Head of Representative Office of Bank Indonesia Bali, Dewi Setyowati in Denpasar on Wednesday, explained that the license revocation imposed to Foreign Exchange Operations (KUPVA) non-bank of seven units headquarters and five branches in Bali.

“The violations committed by the KUPVA non-bank in Bali over the delay in the submission of periodic reports administration,” said Dewi.

The decisive step was taken in view of the central bank’s foreign exchange services sector is closely associated with tourism as one of the main economic pillar on the island.

“In the process, there was some stigma to the perpetrators KUPVA non-bank which is considered as one of Bali’s tourism image destroyer. This is caused by the act of a trader of Foreign Exchange Trader (UKA) by cheating to a number of foreign tourists,” she added.

Dewi explained that the development of unlicensed KUPVA non-bank in Bali has increased quite rapidly. Recent data in BI Office of Bali, total of licensed KUPVA in 2014 reached 526 service offices.

Dewi stated that the proliferation of illegal KUPVA not only detrimental and damaging the image of Bali tourism, but also prone to be used as a means of money laundering and terrorist financing, drug trafficking and smuggling.

BI Bali has signed the Principles of Understanding (PPK) with Bali Police related “Management Coordination Crime in the payment system and KUPVA”.