Putting Bad Moneychangers Out of Business?

Bank Indonesia Changing Registration Rules for Bali Moneychangers
The chairman of the Association of Moneychangers (APVA) in Bali, Ayu Astuti Dharma, on Tuesday, October 28, 2014, recommended that Bank Indonesia create official stickers bearing the Bank’s imprimatur to clearly differentiate legal from unauthorized moneychangers. He said a change in the logo from the APVA is needed as many illegal moneychangers have simply made illegal copies of the Association’s current emblem.

He warned that the illegal moneychangers tend to offer “better” rates of exchange, several hundred  rupiahs more per U.S. dollars than official APVA members. The higher rates are used to lure tourists to illegal moneychangers in order that trickery and fraud can be committed against the unsuspecting visitors. A new regulations (BI No. 16/15/2014) will change the designation of legal moneychangers to “Foreign Exchange Businesses” (KUPVA).

With this change in designation, it is hoped that Bank Indonesia will close down unauthorized moneychangers in Bali. It is also anticipated that Bank Indonesia will adopt a more stringent stance in issuing permits for new KUPVA. Bank Indonesia has given a “window” from September 1, 2014 until January 1, 2015 for existing moneychangers to reregister under the KUPVA rules. The hoped for crackdown on unlicensed moneychangers, according to APVA, will reduce fraudulent practice and inhibit the growing amount of money laundering taking place in Bali.

source : bali discovery tours

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