Financial Fraud Investigation Techniques in Turkey: A Key to Combating Economic Crimes
Turkey has been at the forefront of combating financial fraud and economic crimes, with a robust regulatory framework in place to prevent and investigate these offenses. In this article, we will explore the financial fraud investigation techniques used in Turkey and their effectiveness in maintaining confidence in the financial system.
Defining Financial Crime
In Turkey, financial crime is defined as non-violent criminal activity committed by perpetrators during the course of their professional activities for monetary gain. This type of crime affects the economic order of a state, limiting the money registered and taxed by it, and the proceeds are often used for illicit means that threaten the international community.
Types of Financial Crime in Turkey
The most common types of financial crime in Turkey include:
- Embezzlement
- Abuse of trust
- Forgery
- Counterfeiting
- Bribery
- Fraud
- Money laundering
- Usury
- Terrorist financing
- Tax offenses
- Violation of capital markets regulations
These crimes can have significant economic consequences and undermine confidence in the financial system.
Combating Financial Crime
To combat financial crime, Turkey has implemented a range of measures, including:
- Customer due diligence
- Record-keeping
- Suspicion transaction reporting
- Research and sectoral studies into developments in money laundering
- Development and implementation of methods for preventing and exposing it
- Gathering and analyzing data
- Conducting investigations and examinations
- Conveying information to the relevant authorities
The Financial Action Task Force (FATF), an international organization aimed at combating financial crimes, money laundering, and terrorist financing, has also played a key role in shaping Turkey’s anti-money laundering regime.
MASAK: The Financial Crimes Investigation Board
MASAK is responsible for conducting research and sectoral studies into developments in money laundering, developing and implementing methods for preventing and exposing it, gathering and analyzing data, carrying out investigations and examinations, and conveying information to the relevant authorities. If MASAK detects that laundering has occurred, it reports the case to the Public Prosecutor’s Office.
Sanctions for Financial Crimes
Turkey has also introduced heavy sanctions for financial crimes, including imprisonment for real persons and administrative fines for legal entities. According to Article 20 of the Turkish Criminal Code, criminal liability is personal, and penalties cannot be imposed upon legal entities. However, security measures can be imposed on legal entities that derive unjust benefits from a crime.
Conclusion
Financial fraud investigation techniques in Turkey are crucial in combating economic crimes and maintaining confidence in the financial system. With its robust regulatory framework and heavy sanctions for financial crimes, Turkey is well-equipped to tackle these offenses and protect its economy from harm. By understanding the financial fraud investigation techniques used in Turkey, we can better appreciate the importance of effective anti-money laundering measures in preventing financial crime.