Financial Crime World

Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Regulations in Turkey

Regulatory Framework

Turkey’s AML/CFT regulations are primarily governed by two key pieces of legislation:

  • Law No: 5549 on Prevention of Laundering Proceeds of Crime and Financing of Terrorism (LPCFT): This is the primary legislation that outlines the framework for preventing money laundering and terrorist financing in Turkey.
  • Regulation on Combating Money Laundering and Financing of Terrorism (RoM): This regulation provides detailed rules and guidelines for implementing AML/CFT measures in Turkey.

Customer Due Diligence (CDD)

Effective CDD is a critical component of Turkey’s AML/CFT framework. Obligated parties, including financial institutions, must:

  • Identify customers or those acting on their behalf
  • Receive identification information
  • Verify this information when the transaction amount exceeds TRY 2,000 in wire transfers

CDD arrangements involve institutions making wire transfers and ensuring that they have implemented effective measures to verify customer identities.

Wire Transfer Requirements

Financial institutions are required to ensure that full originator information accompanies each transfer. This includes:

  • Name and surname
  • Account number or reference number
  • Address or place and date of birth
  • Numbers such as TR-ID number, passport number, tax ID number

If a wire transfer message lacks complete originator information, banks and PTT bank are required to take measures to control the information, complete missing details, and update them.

Supervision and Enforcement

The Financial Crimes Investigation Board (MASAK) is responsible for supervising compliance with AML/CFT regulations in Turkey. MASAK:

  • Collects intelligence from public institutions, organizations, natural persons, legal persons, and unincorporated organizations
  • Evaluates draft laws and regulations on AML/CFT
  • Coordinates implementation among relevant institutions

Cooperation and Information Exchange

MASAK is a member of the Egmont Group of Financial Intelligence Units and exchanges intelligence with its counterparts via Egmont Secure Web. This enables Turkey to cooperate with international partners in combating money laundering and terrorist financing.

Overall, Turkey’s AML/CFT framework aims to prevent money laundering and terrorist financing by ensuring transparency in financial transactions, implementing effective customer due diligence measures, and promoting cooperation among relevant authorities.