Financial Crime World

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Turkey Takes Proactive Measures to Combat Money Laundering

In an effort to combat money laundering and maintain the integrity of its financial systems, Turkey has implemented stringent anti-money laundering (AML) laws and regulations that align with global standards.

A Long History of AML Efforts

Turkey’s AML efforts date back to the late 1990s when it adopted its first legislative measures. Over time, the nation has continually refined its legal framework to respond to evolving risks and align with international standards. The cornerstone of Turkey’s AML efforts is Law No. 5549 on Prevention of Laundering Proceeds of Crime, enacted in 2006.

Key Players

The Financial Crimes Investigation Board (MASAK) plays a pivotal role in implementing AML regulations, conducting investigations, and sharing intelligence with relevant stakeholders. Turkey’s engagement with international bodies like the Financial Action Task Force (FATF) has significantly shaped its AML landscape, demonstrating the country’s commitment to global cooperation against financial crimes.

Turkey has established a robust legal framework to combat money laundering and terrorist financing. Key AML laws include:

  • Law No. 5549 on Prevention of Laundering Proceeds of Crime
  • Turkish Penal Code (Law No. 5237)
  • Banking Law (Law No. 5411)
  • Law on the Regulation of Payment Services and Electronic Money Institutions (Law No. 6493)
  • Capital Markets Law (Law No. 6362)

Coordination and Oversight

The Ministry of Finance and Treasury coordinates AML efforts, overseeing MASAK and regulatory agencies like the Banking Regulation and Supervision Agency (BDDK) and the Capital Markets Board (SPK). These agencies ensure that financial institutions comply with AML regulations and adhere to customer due diligence, transaction monitoring, and reporting requirements.

Geographical Location-Specific Risks

Turkey’s geographical location poses specific money laundering risks, including:

  • Trade-based money laundering
  • Informal financial systems
  • Real estate sector activities
  • Corruption and political instability
  • Virtual currencies and online transactions
  • Cross-border movements

To combat these risks, Turkey has implemented AML solutions that include:

  • Customer due diligence measures
  • Suspicious transaction reporting
  • Monitoring of high-risk transactions

International Cooperation

In an effort to enhance its capacity to effectively combat money laundering, Turkey participates in mutual evaluations with international bodies like the FATF and adheres to international standards. The country’s commitment to global cooperation against financial crimes is evident through its engagement with these organizations.