Financial Crime World

Turkey’s Capital Markets Sector Steps Up Anti-Money Laundering Measures

In an effort to combat money laundering and terrorist financing, Turkey’s capital markets sector has taken significant steps to strengthen its anti-money laundering (AML) measures.

Strengthening AML Measures

The country’s financial regulators, including the Banking Regulation and Supervision Agency (BRSA), the Capital Markets Board (CMB), and the Insurance Supervision Authority (ISA), have implemented a range of measures aimed at preventing and detecting AML breaches. These measures include:

  • Administrative penalties for non-compliance, which can include fines, warnings, and suspension or revocation of licenses
  • New rules requiring publicly traded companies to disclose any AML-related issues that may affect their operations or financial performance
  • Strengthened oversight of the insurance sector, introducing new regulations aimed at preventing money laundering and terrorist financing through insurance products

Penalties for Non-Compliance

Failure to comply with AML regulations in Turkey can result in significant penalties, including:

  • Administrative fines: In 2022 alone, Turkey’s financial regulators imposed a total of TL 1.5 billion (approximately $225 million) in administrative fines on banks and other financial institutions for AML-related breaches.
  • Suspension or revocation of licenses
  • Criminal prosecution

Creating a Cultural Shift

Industry experts say that Turkey’s efforts to combat AML are not just about imposing penalties, but also about creating a cultural shift within the country’s financial sector. “AML compliance is no longer just a regulatory requirement, it’s a business imperative,” said one industry expert. “Financial institutions need to prioritize AML compliance and take a proactive approach to preventing and detecting breaches.”

To achieve this goal, Turkey’s financial regulators have introduced measures aimed at promoting good governance and ethical practices within the sector, including:

  • Training programs for financial professionals
  • Regular risk assessments
  • Enhanced oversight and reporting requirements

Conclusion

Turkey’s capital markets sector is taking significant steps to strengthen its AML measures, imposing penalties on non-compliant institutions and promoting a culture of compliance throughout the sector. As the country continues to develop its financial infrastructure, it is essential that regulators maintain their focus on combating money laundering and terrorist financing, and that financial institutions prioritize AML compliance as a key business imperative.