Abstract :
In the Indonesian banking law, the case faced in various bank was caused
by not implementing of prudential principles in banking operational, the lowness
of integrity of banking officials, and also the weakness of law enforcement. Bank
Indonesia as authority of banking supervisors is impossible to conduct any
management efforts of banking system and the sentencing of administrative
sanction; however it is necessary to cooperate as well with the apparatus of law
enforcer or with internal banking, i.e. through Compliance Director. Regulation of
Bank Indonesia Number 1/6/PBI/1999 concerns on the Assignment of
Compliance Director and the Implementation of Standards on Functional
Implementation of Internal Audit of General Bank. The primary task of
Compliance Director is ensuring that bank conducts their efforts appropriate with
all of regulation and procedures of Bank Indonesia, and also other rulers and
regulations as the part of implementation of banking prudential principles;
monitoring and ensuring that the banking business activity has conducted its
agreement and commitment to Bank Indonesia. This writing discusses on the
function of Compliance Director in order to enforce the prudential principles in
management of a bank.
This kind of research is normative research based on statute approach.
Statute approach is a kind of approach that focused on law regulation that related
to the central theme of this research.
In the result, his research provided suggestion in order Compliance
Director increases his performance and capable to conduct professionally in the
matter of supervisory toward any decision taken by internal bank