Document background
The Bank Gift Letter is a crucial document in Indonesian banking practice, used when one party wishes to make a monetary gift to another through formal banking channels. This document type emerged from the need to properly document gift transactions in compliance with Indonesian Banking Law No. 10 of 1998 and anti-money laundering regulations. The letter serves multiple purposes: it provides clear evidence of the gift's voluntary nature, helps prevent future disputes, ensures compliance with banking regulations, and creates a clear audit trail for tax purposes. It's particularly important in the Indonesian context where gifts (hibah) may have both civil law and Islamic law implications. The Bank Gift Letter typically includes detailed information about the donor and recipient, specific gift amount, source of funds declaration, and various compliance statements required by Indonesian banking regulations.
