Century Bank Managerial Ethics Case The crisis experienced by Century Bank was not caused by the global crisis, but because of the bank's internal problems. The internal problem is the existence of fraud committed by the bank management against customers regarding: a. Misappropriation of customer funds up to Rp 2.8 trillion (Central Bank customers amounting to Rp 1.4 trillion and Antaboga Deltas Sekuritas Indonesia customers amounting to Rp 1.4 trillion). b. Sales of fictitious mutual funds from Antaboga Deltas Sekuritas Indonesia. Where the product does not have a permit from BI and Bappepam LK. These two problems caused huge losses for Century Bank customers. Where they can't do banking transactions and their money can't be disbursed for a while. The Century Bank case was very detrimental to its customers where after Century Bank lost clearing, Century Bank customers were unable to conduct banking transactions, both cash transactions and non-cash transactions. After losing clearing, on the same day, Bank Century customers were unable to withdraw cash from Bank Century ATMs or from joint ATMs. Then the customers came to the Century Bank office to ask for clarification from the Bank's officers. However, bank officials cannot guarantee that tomorrow the money can be withdrawn via ATM or not. So that the withdrawal of funds can only be done through a teller with a limited amount of up to Rp 1 million. This raises customer concerns about the fate of their funds at Century Bank. After November 13, 2008, Bank Century customers admitted that transactions in foreign currency could not be taken, clearing was not possible, and even transfers were not possible. The bank only allows the transfer of deposit funds to dollar savings. So the money can't come out of the bank. This happened to all Century Bank customers. Bank customers feel cheated and disadvantaged because a lot of customer money is stored in the bank but now cannot be disbursed. Customers assume that Century Bank has traded illegal investment products. This is because Antaboga's investment products marketed by Century Bank are not registered with Bappepam-LK. And it is appropriate for Century Bank management to know that the product is illegal. This has led to many protests by customers. The customers protested by holding demonstrations until they occupied the Century Bank branch office. Even the customers reported the fraudulent actions to the Police Headquarters to the DPR to immediately resolve the case, and asked for their deposit money to be returned. In addition, customers also investigated the performance of Bappepam-LK and BI which were deemed not to work well. This is because BI and Bappepam were not firm and turned a blind eye to investigating the fictitious investment of Century Bank that had been carried out since 2000. This case can also have an impact on other banks, where the public will no longer trust the national banking system. So that the Century Bank case can harm the Indonesian banking world. Source: national.tempo.co